{"id":27855,"date":"2025-05-15T17:21:40","date_gmt":"2025-05-15T17:21:40","guid":{"rendered":"http:\/\/medexperts.pro\/?p=27855"},"modified":"2025-05-15T17:27:49","modified_gmt":"2025-05-15T17:27:49","slug":"s-e-c-investigating-whether-coinbase-misstated-its-user-numbers","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=27855","title":{"rendered":"S.E.C. Investigating Whether Coinbase Misstated Its User Numbers"},"content":{"rendered":"
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The inquiry continued even after the commission dropped a lawsuit accusing Coinbase of illegally marketing digital currencies to the public.<\/p>\n

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Not long after President Trump took office, Coinbase, the largest U.S. cryptocurrency exchange, got some good news: The Securities and Exchange Commission was dropping a lawsuit that had accused the company of illegally marketing digital currencies to the public.<\/p>\n

But that case may not be the end of the company\u2019s legal troubles.<\/p>\n

The S.E.C. has also been investigating whether Coinbase misstated its user numbers in past disclosures \u2014 an inquiry that began during the Biden administration and has continued under Mr. Trump, according to four people familiar with it.<\/p>\n

The investigation, which has not been previously reported, has focused on a metric that Coinbase included in securities filings and marketing materials, claiming that the company had more than 100 million \u201cverified users,\u201d said the people, who spoke on the condition of anonymity. The data point appeared in Coinbase\u2019s original public offering document<\/a> in 2021, but the company stopped citing it two years later.<\/p>\n

Coinbase has been in touch with the S.E.C. over the course of this year, two people familiar with the inquiry said, and has hired the law firm Davis Polk & Wardwell to assist with its response.<\/p>\n<\/div>\n<\/div>\n

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A representative for the S.E.C. said the agency would not comment on \u201cthe existence or nonexistence of a possible investigation.\u201d<\/p>\n

Paul Grewal, Coinbase\u2019s chief legal officer, said in a statement that the S.E.C.\u2019s inquiry was \u201ca holdover investigation from the prior administration about a metric we stopped reporting two and a half years ago.\u201d<\/p>\n

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The inquiry continued even after the commission dropped a lawsuit accusing Coinbase of illegally marketing digital currencies to the public.Not long after President Trump took office, Coinbase, the largest U.S. cryptocurrency exchange, got some good news: The Securities and Exchange Commission was dropping a lawsuit that had accused the company of illegally marketing digital currencies to the public.But that case may not be the end of the company\u2019s legal troubles.The S.E.C. has also been investigating whether Coinbase misstated its user numbers in past disclosures \u2014 an inquiry that began during the Biden administration and has continued under Mr. Trump, according to four people familiar with it.The investigation, which has not been previously reported, has focused on a metric that Coinbase included in securities filings and marketing materials, claiming that the company had more than 100 million \u201cverified users,\u201d said the people, who spoke on the condition of anonymity. The data point appeared in Coinbase\u2019s original public offering document in 2021, but the company stopped citing it two years later.Coinbase has been in touch with the S.E.C. over the course of this year, two people familiar with the inquiry said, and has hired the law firm Davis Polk & Wardwell to assist with its response.A representative for the S.E.C. said the agency would not comment on \u201cthe existence or nonexistence of a possible investigation.\u201dPaul Grewal, Coinbase\u2019s chief legal officer, said in a statement that the S.E.C.\u2019s inquiry was \u201ca holdover investigation from the prior administration about a metric we stopped reporting two and a half years ago.\u201dWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and\u00a0log into\u00a0your Times account, or\u00a0subscribe\u00a0for all of The Times.Thank you for your patience while we verify access.Already a subscriber?\u00a0Log in.Want all of The Times?\u00a0Subscribe.<\/p>\n","protected":false},"author":1,"featured_media":27857,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-27855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/27855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27855"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/27855\/revisions"}],"predecessor-version":[{"id":27858,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/27855\/revisions\/27858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/27857"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}