Barely hours after suffering a security breach, US-based cryptocurrency exchange Coinbase is now the subject of an SEC investigation. The securities watchdog is probing Coinbase for alleged untrue statements about its user metrics from 2021.
US SEC Launches Probe Against Coinbase For Misleading Statements
According to a New York Times report, the US SEC is investigating Coinbase over previous disclosures about its user numbers. Per the report, the SEC is hinging its probe on a 2021 disclosure where Coinbase claimed to have over 100 million verified users.
While Coinbase ceased citing the document in further interactions with the SEC, the securities watchdog is accelerating its investigations. The NYT report claims that Coinbase has been interfacing with the SEC over the matter since the start of the year.
Unable to reach a resolution, Coinbase is mounting a strong defense, enlisting law firm Davis Polk & Wardwell to its ranks. Coinbase Chief Legal Officer Paul Grewal took swipes at the investigation, describing it as a fallout from the Gensler years.
“The SEC inquiry is a holdover investigation from the prior administration about a metric we stopped reporting two and a half years ago,” said Grewal.
THIS IS A DEVELOPING STORY
The post Breaking: Coinbase Under SEC Investigation Over Misleading Statements, Coin Stock Falls By 6% appeared first on CoinGape.
