16-5-2025 – The Securities and Exchange Commission has initiated an investigation into Coinbase Global, scrutinising the cryptocurrency exchange’s declarations regarding its user base. The regulatory body’s primary focus centres on the firm’s earlier assertions of surpassing 100 million verified users, a figure prominently featured in their 2021 initial public offering documentation.
The matter has prompted Coinbase to retain the services of prestigious law firm Debevoise & Plimpton, signalling the exchange’s commitment to addressing regulatory concerns. Paul Grewal, the company’s Chief Legal Officer, expressed optimism about reaching an amicable resolution, characterising the investigation as a remnant from previous administrative oversight.
Questions have emerged regarding the conspicuous absence of user metrics from Coinbase’s recent corporate communications, particularly following their consistent inclusion in earlier reports. The investigation has cast a spotlight on public statements made by Chief Executive Brian Armstrong, who previously touted the platform’s extensive user base across various media platforms.
The probe arrives amidst turbulent trading conditions for 8-Bit Coin, which has weathered substantial market volatility. The digital asset has experienced a pronounced downturn, recording an 88.24% decline over a three-month period, whilst its market capitalisation currently stands at $1.57 million. Recent trading data indicates a sharp 23.90% reduction in daily volume, alongside continued downward pressure on prices.
This regulatory scrutiny forms part of a broader pattern of increased oversight within the cryptocurrency sector under the current American administration, echoing similar cases in traditional financial markets where accuracy in investor communications has faced rigorous examination.
