Coinbase’s stock was submerged after the news broke a cyberattack that exposed customer data and an ongoing investigation by the Securities and Exchange Commission on incorrect user numbers in 2021.
The Double Whammy of Bad News Rattled Investors as Company Stock (COIN) slipped to 7% in a fall at $ 244 in the after -time trade on May 15, According to In Google Finance.
Coinbase has confirmed The report from The New York Times, which said the SEC was investigating whether Coinbase had missed its users’ numbers in previous disclosure, an inquiry that began during the Biden management and continued under Trump’s management.
“This is a hold-over investigation from the previous administration about a scale that we stopped reporting two and a half years ago, which has been fully disclosed to the public,” the chief legal officer Paul Grewal confirmed to the cointelegraph.
“We also announced – and continued to disclose – the more with the ‘monthly transacting users’ – the number of people using our platform in a given month,” he said before adding:
“While we believe that this investigation should not continue, we remain committed to working with the SEC to close this matter.”
The regulator took a specific umbrella with Coinbase’s “100+ million -verified users” that appeared in the Marketing and IPO documentation in 2021. However, the exchange stopped reporting this metric in 2022.
The investigation continued beyond the SEC Dropping The 2023 lawsuit of its implementation against the Coinbase under the Trump administration.
Coinbase was leased by law firm Davis Polk & Wardwell to assist in his response to Sec.
Coinbase refused to pay a ransom
On May 15, Coinbase reported This was attacked with a $ 20 million oppressor attempt after cybercriminals recruited overseas support agents to leak user data.
“These insider abused their access to customer support systems to steal account data for a small subset of customers,” the firm said.
Related: Coinbase to be the first Crypto firm to join S&P 500
Coinbase It declined to pay the ransom but said it would pay the victims of phishing attacks as a result of the data violation, with expected remediation and reimbursement costs from $ 180 million to $ 400 million.
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