Coinbase Says SEC Investigating Its Past Reporting of User Metrics

Group 1: SEC Investigation - Coinbase is cooperating with the SEC regarding an investigation into whether it overstated the number of unique users in past disclosures [1] - The investigation is a continuation from the previous administration concerning a metric that Coinbase stopped reporting two and a half years ago [2] - Coinbase's Chief Legal Officer expressed belief that the investigation should not continue but emphasized the company's commitment to resolving the matter with the SEC [2] Group 2: Legal Context - The SEC dismissed a lawsuit against Coinbase in February 2023, indicating a shift in its regulatory approach to the crypto industry [3] - The SEC had previously sued Coinbase in June 2023 for allegedly violating securities laws by not registering its functions as an exchange, broker, and clearing agency [3] Group 3: Data Breach Incident - Coinbase disclosed a data breach that involved cybercriminals convincing a small group of insiders to copy customer support data, affecting less than 1% of its monthly transacting users [4][5] - The company has taken action by firing the compromised employees, referring them to law enforcement, and committing to reimburse customers who were tricked into sending funds to the attacker [6] - Coinbase is also implementing new customer safeguards following the incident [6]