Coinbase SEC Probe and Security Breach Unlikely to Derail Growth, Experts Say
Coinbase disclosed a data breach involving insider collusion and a $20 million Bitcoin blackmail attempt, affecting less than 1% of its customers. CEO Brian Armstrong revealed that overseas support agents accepted bribes to leak sensitive user data. Coinbase refused to pay the ransom and is offering a $20 million bounty for information on the perpetrators. The breach has sparked criticism regarding the centralized nature of crypto infrastructure. Additionally, the U.S. Securities and Exchange Commission (SEC) is investigating whether Coinbase misled investors by overstating its user count in past filings. Coinbase has since retired the disputed metric, stating it was unreliable. The SEC probe follows a lawsuit dismissal against Coinbase regarding illegal token sales. Experts suggest the investigation may not significantly impact Coinbase's future, comparing it to past cases faced by other firms. Coinbase argues that the metric was disclosed appropriately and has shifted focus to more meaningful performance indicators.
