Dry investigating the question of whether Coinbase has disturbed its user numbers

Shortly after President Trump took office, Coinbase, the greatest American cryptocurrency exchange, obtained good news: the Securities and Exchange Commission abandoned a lawsuit that had accused the company of illegally marketing digital currencies to the public.

But this case may not be the end of the company’s legal problems.

The SEC also studied if Coinbase has resulted in its number of users in past disclosure – an investigation that started during the Biden administration and continued under Mr. Trump, according to four people who have familiar.

The survey, which was not previously reported, focused on a metric that Coinbase included in the securities documents and marketing media, claiming that the company had more than 100 million verified users, “said the people, who spoke of the state of anonymity. The data point appeared in the original Coinbase public tender document in 2021, but the company ceased to cite them more years late.

Coinbase was in contact with the SEC during this year, two people familiar with the investigation said, and hired the law firm Davis Polk & Wardwell to help his answer.

A SEC representative said that the agency would not comment on “the existence or the non-existence of a possible investigation”.

Paul Grewal, the legal director of Coinbase, said in a statement that the SEC investigation was “an investigation to deduction from the previous administration on a metric that we stopped reporting two and a half years ago”.