Coinbase shares fell following reports of a cyberattack that exposed customer data and an ongoing SEC investigation into misreported 2021 user figures.
This double dose of negative news concerned investors, causing the company's shares to fall 7% to $244 in after-hours trading on May 15, according to Google Finance.
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Coinbase confirmed The New York Times report, indicating that the SEC has been investigating whether Coinbase misreported user numbers, an investigation that began under the Biden administration and has persisted under the Trump administration.
Coinbase chief legal officer Paul Grewal said:
"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. We also disclosed – and continue to disclose – the more relevant metric of ‘monthly transacting users’ – the number of people who use our platform in a given month. While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close."
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