Coinbase faces SEC probe over historical user metrics: report

By: bitcoin ethereum news|2025/05/16 03:45:06

Stock slips 6% after report on federal investigation. The regulatory scrutiny comes as Coinbase deals with the aftermath of a cybersecurity breach disclosed earlier in the day. Hackers reportedly stole customer data and are demanding a $20 million ransom. Coinbase confirmed Thursday that the US Securities and Exchange Commission is investigating whether the company overstated user numbers in prior disclosures. The development, first reported by The New York Times, contributed to a decline of about 6% in Coinbase shares during the session. The inquiry centers on Coinbase’s reporting of “verified users,” a metric the company has cited in filings and promotional materials as totaling more than 100 million. According to the report, the investigation originated during the Biden administration and has continued under the current SEC, which has taken a comparatively more accommodating stance toward the crypto industry. “This is a hold-over investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public,” said Paul Grewal, Coinbase’s chief legal officer, in a statement to CNBC. He added that the verified users figure included anyone who completed an email or phone number verification, which could have led to an overstatement of unique customers. Grewal also emphasized that Coinbase now focuses on a different disclosure: monthly transacting users, a figure the company considers a more relevant indicator of platform activity. “While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close,” he added. Cyberattack adds to market pressure The regulatory scrutiny comes as Coinbase deals with the aftermath of a cybersecurity breach disclosed earlier in the day. Hackers reportedly stole customer data and are demanding a $20 million ransom. Coinbase estimates the incident could cost the company up to $400 million. The timing compounds an already volatile period for the company. Coinbase recently announced its inclusion in the S&P 500 index, effective next week, and revealed plans to acquire crypto derivatives platform Deribit as part of its global expansion strategy. Speaking on an earnings call last week, CEO Brian Armstrong said he aims to make Coinbase “the No. 1 financial services app in the world” within the next five to 10 years. Coinbase currently operates the largest cryptocurrency exchange in the United States. Source: https://coinjournal.net/news/coinbase-faces-sec-probe-over-historical-user-metrics-report/

OpenClaw is a rapidly growing open-source AI agent that can autonomously execute tasks and interact with software, including connecting to crypto exchanges through APIs to analyze markets and automate trading strategies. While this creates new opportunities for smarter trading, it also introduces security and operational risks. Through this article, WEEX aims to help users better understand the potential and risks of AI trading agents so they can explore new technologies while trading more safely and responsibly.

Ethereum 2029 Strawmap Guide: Ultra-Fast Consensus, Native Privacy, and the "Acceleration Variables" Brought by AI

Understanding Ethereum 2029 "Sketch": 7 Upgrades, 5 Major Goals, and a "Theseus's Ship" Style Reconstruction.

Altcoin ETF Surge: SOL and XRP Inflows Total $23 Million as Institutions Diversify

Key Takeaways Institutional interest in altcoin ETFs is expanding, with SOL and XRP showing significant inflows on March…

Vitalik Drops Ethereum Endgame Bombshell: ETH USD to $3,000?

Key Takeaways Vitalik Buterin introduces the “Sanctuary Tech” manifesto to address Ethereum’s non-financial limitations. A current lack of…

Exclusive: Yuliya Barabash Predicts the Most Regulated Could Be the Biggest Crypto Winners

Key Takeaways The aftermath of FTX and Celsius collapses has ushered a new regulatory era, reshaping the crypto…

iPhone Crypto Wallets Under Threat from State-Grade Malware

Key Takeaways: The Coruna exploit kit exploits 23 iOS vulnerabilities, threatening iPhone users’ crypto wallets. Initially state-level surveillance,…

Bitcoin Nears Two-Year ‘Make-or-Break’ Resistance: Future Implications

Key Takeaways Bitcoin’s price is approaching key resistance levels around $73,000, observed for the first time since early…

What Is Vibe Coding? How AI Is Changing Web3 & Crypto Development

What is vibe coding? Learn how AI coding tools are lowering the barrier to Web3 development and enabling anyone to build crypto applications.

The parent company of the New York Stock Exchange strategically invests in OKX: The intentions behind the $25 billion valuation

WEEX P2P update: Country/region restrictions for ad posting

I. Overview

When publishing P2P ads, advertisers can now set the following:

Allow only counterparties from selected countries or regions to trade with your ads.

With this feature, you can:

Target specific user groups more precisely.Reduce cross-region trading risks.Improve order matching quality.

II. Applicable scenarios

The following are some common scenarios:

III. How to get started

On the ad posting page, find "Trading requirements":

When an advertiser enables the "Country/Region Restriction" feature, users who do not meet the criteria will be blocked when placing an order and will see the following prompt:

If you encounter this issue when placing an order as a regular user, try the following solutions.

IV. Benefits

Compared with ads without country/region restrictions, this feature provides the following improvements.

Aspect

Improvement

Trading security

Reduces abnormal orders and fraud risk

Conversion efficiency

Matches ads with more relevant users

Order completion rate

Reduces failures caused by incompatible payment methods

V. FAQ

Q1: Why are some users not able to place orders on my ad?
A1: Their country or region may not be included in your allowlist.

Q2: Can I select multiple countries or regions when setting the restriction?
A2: Yes, multiple selections are supported.

Q3: Can I edit my published ads?
A3: Yes. You can edit your ad in the "My Ads" list. Changes will take effect immediately after saving.