Coinbase faces an research of the SEC on the historical metrics of the users: Report

Coinbase confirmed Thursday that the US stock and values ​​commission. UU. It is investigating whether the company exaggerated the number of users in previous disseminations.

The development, first reported by The New York Times, contributed to a fall of around 6% in Coinbase actions during the session.

The research focuses on Coinbase reports on “verified users”, a metric that the company has cited in promotional presentations and materials for a total of more than 100 million.

According to the report, the investigation originated during the Biden administration and has continued under the current SEC, which has adopted a comparatively more complacent position towards the cryptocurrency industry.

“This is a retention investigation of the previous administration on a metric that we stopped informing two and a half years ago, which was completely disclosed to the public,” said Paul Grewal, legal director of Coinbase, in a statement to CNBC.

He added that the number of verified users includes anyone who has completed an email verification or telephone number, which could have led to an overestimation of unique customers.

Grewal also emphasized that Coinbase now focuses on a different dissemination: users who make monthly transactions, a figure that the company considers a more relevant indicator of the platform activity.

“While we firmly believe that this research should not continue, we remain committed to working with the S to close this matter,” he added.

Cybert

The regulatory scrutiny occurs when Coinbase fights with the sequels of a rape of revealed cybersecurity earlier in the day. According to reports, computer pirates stole customer data and demand a rescue of 20 million dollars. Coinbase estimates that the incident could cost the company to USD 400 million.

The moment aggravates an already volatile period for the company. Coinbase recently announced its inclusion in the S&P 500 index, starting next week, and revealed plans to acquire the Cryptoderivated Deribit platform as part of its global expansion strategy.

Speaking in a profit call last week, CEO Brian Armstrong said his goal is to make coinbase “the application of financial services number 1 in the world” within the next five to 10 years. Coinbase is currently operating the largest cryptocurrency in the United States.