The US SEC is stepping up its investigation against Coinbase for announcing misleading user numbers as COIN stocks take a hit.
US-based cryptocurrency exchange Coinbase is now the subject of an SEC investigation, barely hours after suffering a security breach.
The securities watchdog has been investigating Coinbase for alleged misrepresentations about its user metrics since 2021.
The US SEC has launched an investigation into Coinbase for misleading statements.
According to a New York Times report, the US SEC is investigating Coinbase over previous disclosures about its user numbers.
According to the report, the SEC is focusing its investigation on a 2021 disclosure where Coinbase claimed to have more than 100 million verified users.
While Coinbase stopped short of citing the document in further discussions with the SEC, the securities watchdog is stepping up its investigation.
The NYT report claims that Coinbase has been intervening with the SEC over the matter since the beginning of the year.
Unable to reach a resolution, Coinbase is mounting a strong defense, enlisting law firm Davis Polk & Wardwell to its ranks.
Coinbase Chief Legal Officer Paul Grewal slammed the investigation, calling it the result of years of Gensler.
"The SEC inquiry is a holdover investigation from the previous administration into a metric we stopped reporting two and a half years ago," Grewal said.
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