BlockBeats reports that on May 16, according to the New York Times, shortly after President Trump took office, the largest cryptocurrency exchange in the U.S., Coinbase (COIN.O), received good news: the SEC dropped its lawsuit accusing it of illegally promoting digital currencies to the public. However, this is far from the end of the company's legal troubles.
According to four informed sources, the SEC is investigating whether Coinbase has inflated user numbers in past disclosure documents—this investigation, which began under the Biden administration, continued during the Trump presidency. The previously undisclosed investigation focuses on Coinbase's claim of having over 100 million 'verified users' in its securities filings and promotional materials.
This data appeared in the 2021 IPO documents, but the company stopped referencing it two years later. Two informed sources said that Coinbase has been in continuous communication with the SEC this year and has hired Davis Wright Tremaine LLP to assist in the response. (Jin Shi)