🚨 Coinbase Faces Major Setbacks: Stock Drops Amid Cyberattack and SEC Probe 🚨
On May 15, 2025, Coinbase's stock (COIN) fell over 7%, closing at $244.44, following two significant developments:
1. Cyberattack and Data Breach:
Hackers bribed overseas contractors to access sensitive customer data, including names, partial Social Security numbers, and transaction histories.
The attackers demanded a $20 million ransom, which Coinbase refused to pay. Instead, the company offered a $20 million reward for information leading to the perpetrators' arrest.
The breach is expected to cost Coinbase between $180 million and $400 million in remediation and customer reimbursements.
2. SEC Investigation:
The U.S. Securities and Exchange Commission (SEC) is investigating Coinbase over its 2021 claim of having more than 100 million "verified users."
The probe focuses on whether Coinbase overstated user numbers in its past disclosures.
These challenges come just days before Coinbase's scheduled inclusion in the S&P 500 index, casting a shadow over what was anticipated to be a milestone event for the company.