SEC is investigating whether Coinbase misreported its user numbers

Odaily Planet Daily News According to the New York Times, shortly after US President Trump took office, Coinbase (COIN.O), the largest cryptocurrency exchange in the United States, received good news: the U.S. Securities and Exchange Commission (SEC) withdrew the lawsuit accusing it of illegally promoting digital currencies to the public. But this is far from the end of the company's legal disputes. According to four people familiar with the matter, the SEC is investigating whether Coinbase has falsely reported the number of users in past disclosure documents-an investigation that began in the Biden administration and is still continuing during Trump's tenure. The previously undisclosed investigation focuses on Coinbase's claim of having more than 100 million "certified users" in securities filings and promotional materials. The data appeared in the 2021 listing documents, but the company stopped citing it two years later. Two people familiar with the matter said that Coinbase has continued to communicate with the SEC this year and hired Davis Polk to assist in responding.