Coinbase Shares Dip 7% Following SEC Probe
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The Securities and Exchange Commission (SEC) has dropped its 2023 lawsuit accusing Coinbase of selling crypto assets without registration. However, this isn’t the end of Coinbase’s legal challenges.
The SEC is currently investigating whether Coinbase misled investors about its user numbers, specifically the claim of having over 100 million “verified users.”
This figure appeared in official documents when Coinbase went public in 2021, but the company ceased using it two years later.
The investigation began under the Biden administration and has continued into the Trump era. Coinbase has engaged with the SEC this year and has enlisted the major law firm Davis Polk & Wardwell for assistance. Following this news, Coinbase shares fell by 7%.
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