The Securities and Exchange Commission (SEC) is investigating Coinbase for potentially overstating its user numbers in past financial filings, causing market uncertainty and impacting investor confidence. The probe centers on the company’s reported ‘verified users’ metric, which could have misled investors about actual user activity and revenue trends. This comes amid a broader regulatory crackdown on the cryptocurrency industry by the SEC. Coinbase CEO Brian Armstrong and other company executives are under scrutiny for their 2021 IPO disclosures related to financial reporting. The company has not yet directly addressed the probe’s specifics, but its stock price has plummeted up to 8%. Investors are concerned about potential regulatory outcomes that could further destabilize the crypto market. This investigation is part of a larger trend in which regulators aim for greater transparency and accuracy in cryptocurrency data disclosure.