S.E.C. Investigating Whether Coinbase Misstated Its User Numbers

Description

The SEC is investigating whether Coinbase misled investors by overstating its “verified users” in IPO-related filings. The inquiry began under the Biden administration and has continued under President Trump.

Publish date

May 15, 2025

Publisher

The New York Times

Web archive URL

https://archive.is/v8SG8

Web URL

https://www.nytimes.com/2025/05/15/technology/coinbase-sec-investigation.html

Referenced by

In a 2023 securities filing, Coinbase said it would no longer cite the figure in statements to investors. The number was “not indicative of our overall performance” and “no longer provides valuable insight into our business performance,” the company said.

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Agency officials have contacted former Coinbase employees over the past few months, seeking information about the “verified user” figure, said the people familiar with the inquiry

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In a social media post in 2022, Mr. Armstrong said the company was up to 103 million verified users. He repeated the figure in a YouTube video that year, and the company cited it in securities filings.

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