Coinbase drops 7% on customer breach, SEC probe into user numbers
Coinbase stock fell 7% to $244 following a cyberattack that exposed customer data and an ongoing SEC investigation into misstated user numbers from 2021. The SEC is examining claims of "100+ million verified users" made in Coinbase's marketing and IPO documents, despite the company ceasing to report this metric in 2022. Coinbase's chief legal officer stated the investigation is outdated and emphasized their commitment to cooperating with the SEC. The company has engaged law firm Davis Polk & Wardwell for assistance. Additionally, Coinbase faced a $20 million extortion attempt linked to the cyberattack, where insiders accessed customer support systems to steal data. Coinbase declined to pay the ransom and plans to reimburse victims, with remediation costs estimated between $180 million and $400 million.
