Cryptocurrency exchange Coinbase is facing a dual challenge: an ongoing Securities and Exchange Commission (SEC) investigation and a recent security breach affecting user data. This situation adds to investor concerns about the company’s security and transparency, already heightened by the regulatory scrutiny it faces in the US. 100 million verified users claimed in their IPO documents have raised eyebrows as investigations from the SEC regarding potentially inflated user numbers are underway. Coinbase acknowledges potential exaggeration of user data, with some users creating multiple accounts, a move leading to a security breach that impacted a small group. The company has taken steps by terminating the compromised employees and collaborating with law enforcement for affected users’ protection.