The SEC has been investigating Crypto Exchange Coinbase (COIN) about whether it erroneously established its user numbers in previous marketing values and materials.
The investigation began under the former presidential administration, while the SEC was still under the control of Gary Gensler, then President Gensler, according to the NYT, who first reported history, but has persisted under the current and friendly leadership with the cryptography of the SEC.
The metric in the heart of the investigation is Coinbase’s statement to have more than 100 million “verified users.” He stopped using the metric in dissemination and marketing materials in 2021, the year he became public at Nasdaq.
Paul Grewal, the legal director of Coinbase, told COINDESK in a statement sent by email that the research of the SEC is a “retention investigation of the previous administration on a metric that we stopped informing two and a half years ago, which was completely revealed to the public.”
“We explain that the metric of verified users includes anyone who verifies their email address or telephone number with us, so it can exaggerate the number of unique customers,” said Grewal, “we also reveal, and continue spreading, the most relevant metric of ‘monthly transactions users’, the number of people who use our platform in a given month.”
“While we firmly believe that this research should not continue, we remain committed to working with the S to close this matter,” Grewal added.
The SEC did not respond to the request for comment from Coindesk at the time of publication.
Under pressure due to the current dissemination of a data violation, Coin’s actions were submerged a little more in this news of the SEC, now fell 6.6% in the session.
