Core Viewpoint - Coinbase is under investigation by the U.S. Securities and Exchange Commission (SEC) regarding potential misstatements of its user numbers, specifically the "verified users" metric, which the company claims exceeds 100 million [1][2]. Group 1: Investigation Details - The SEC's inquiry is focused on the number of "verified users" reported by Coinbase, which has been a point of contention since the investigation began during the Biden administration and has continued under the Trump administration's SEC [2]. - Coinbase's chief legal officer stated that the investigation pertains to a metric that the company stopped reporting two and a half years ago, clarifying that the "verified users" metric may overstate the number of unique customers [3]. Group 2: Company Response and Metrics - The company has disclosed a more relevant metric, "monthly transacting users," which reflects the number of users engaging with the platform in a given month [3]. - Coinbase remains committed to cooperating with the SEC to resolve the investigation, despite believing it should not continue [3]. Group 3: Recent Challenges and Developments - Coinbase's stock fell by 6% following the news of the SEC investigation and an incident where hackers stole customer information, demanding a ransom of $20 million, with potential costs to fix the issue estimated at up to $400 million [1][4]. - The company operates the largest crypto exchange in the U.S. and recently announced an acquisition aimed at expanding its global reach, alongside gaining entry to the S&P 500 stock index, effective next week [5].