On May 16, according to The New York Times, shortly after President Trump took office, Coinbase (COIN.O), the largest cryptocurrency exchange platform in the United States, received good news: the Securities and Exchange Commission (SEC) withdrew its lawsuit alleging illegal public promotion of digital currencies. However, this was far from the end of the company's legal disputes.
According to four informed sources, the SEC is investigating whether Coinbase misreported user numbers in its past disclosure documents—an investigation that began during the Biden administration and continued from the Trump era. The previously undisclosed investigation focuses on Coinbase's claim of having over 100 million "verified users" in its securities filings and promotional materials.
This data appeared in the 2021 listing documents but was discontinued by the company two years later. Two informed sources stated that Coinbase has continued to communicate with the SEC this year and has hired Davis Law Firm to assist in addressing the matter. (Jinshi)
