The Securities and Exchange Commission has been investigating whether Coinbase (COIN) misstated its user numbers in past disclosures in an inquiry that began during the Biden administration and has continued President Trump, David Yaffe-Bellany and Matthew Goldstein of New York Times reports, citing four people familiar with the matter. The investigation has focused on a metric that Coinbase included in securities filings and marketing materials, claiming that the company had more than 100M “verified users,” sources told the Times. The data point appeared in Coinbase’s original public offering document in 2021, but the company stopped citing it two years later, the paper points out. Coinbase has been in touch with the SEC over the course of this year and has hired the law firm Davis Polk & Wardwell to assist with its response, two people familiar with the inquiry said. Shares of Coinbase are down 6%, or $16.97, to $246.45 in afternoon trading.
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