The SEC has been investigating crypto change Coinbase (COIN) over whether or not it misstated its consumer numbers in previous securities filings and advertising supplies.
The probe started beneath the previous presidential administration whereas the SEC was nonetheless beneath the management of then-Chair Gary Gensler, in keeping with the NYT, which first reported the story, however has continued beneath the SEC’s present, crypto-friendly management.
The metric on the coronary heart of the investigation is Coinbase’s declare to have over 100 million “verified customers.” It stopped utilizing the metric in each disclosure and advertising supplies in 2021, the yr it went public on the Nasdaq.
Paul Grewal, Coinbase’s chief authorized officer, informed CoinDesk in an emailed assertion that the SEC’s investigation is a “hold-over investigation from the prior administration a couple of metric we stopped reporting two and a half years in the past, which was totally disclosed to the general public.”
“We defined that the verified customers metric contains anybody who verified their e mail handle or cellphone quantity with us, so it could overstate the variety of distinctive clients,” stated Grewal “We additionally disclosed – and proceed to reveal – the extra related metric of ‘month-to-month transacting customers’ – the quantity of people that use our platform in a given month.”
“Whereas we strongly imagine this investigation shouldn’t proceed, we stay dedicated to working with the SEC to convey this matter to a detailed,” Grewal added.
The SEC didn’t reply to CoinDesk’s request for remark by press time.
Already beneath strain as a result of at this time’s disclosure of an information breach, COIN shares dipped a bit additional on this SEC information, now down 6.6% on the session.
