The SEC is continuing to investigate Coinbase over past statements about its user base, despite recent moves under President Trump to roll back crypto enforcement, The New York Times reported.
According to four people familiar with the matter, the SEC inquiry centers on Coinbase’s past claims of having more than 100 million “verified users,” a figure prominently featured in its 2021 IPO filing.
User number issues
Regulators are examining whether that number may have misrepresented the scale of the company’s user base and misled investors. Coinbase stopped citing the metric in 2023, acknowledging it may have overstated unique users since individuals could register multiple accounts.
Coinbase, which is working with law firm Davis Polk & Wardwell, says the investigation began under the Biden administration and should be closed.
Chief legal officer Paul Grewal called it “a holdover investigation” and noted the company ceased using the metric over two years ago, according to the NYT.
Still, the inquiry reflects how some SEC oversight has persisted even as the agency, now led by crypto-friendly Chair Paul Atkins, has dropped numerous enforcement actions, including a major lawsuit against Coinbase filed last year.
The investigation comes as Coinbase gains institutional clout. The company was added to the S&P 500 this week, and CEO Brian Armstrong has become increasingly visible in Washington.
In March, he attended a White House crypto summit, sitting just a few seats from President Trump. Coinbase also disclosed a data breach this week that could cost up to $400 million, according to an SEC filing.
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