The SEC is investigating whether Coinbase has overstated its user numbers.

BlockBeats News, May 16th, according to The New York Times, shortly after taking office, U.S. President Trump, the United States' largest cryptocurrency exchange Coinbase (COIN.O) received a positive news: the U.S. Securities and Exchange Commission (SEC) dismissed the lawsuit accusing it of illegally promoting cryptocurrency to the public. However, this is far from the end of the company's legal troubles.

According to four sources familiar with the matter, the SEC is investigating whether Coinbase has overstated its user numbers in past disclosure documents—a probe that began during the Biden administration continues into the Trump era. The previously undisclosed investigation focused on Coinbase's claims in securities filings and marketing materials that it had over 100 million "verified users."

This data appeared in the company's 2021 listing documents but was no longer referenced by the company two years later. Two sources said that Coinbase has been in communication with the SEC this year and has hired the Debevoise & Plimpton law firm to assist. (Jinse Finance)

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