Coinbase stock faced a 7% decline following reports of a cyberattack that compromised customer data and an ongoing Securities and Exchange Commission (SEC) investigation into misstated user numbers in 2021. The company’s shares (COIN) fell to $244 in after-hours trading on May 15, as per Google Finance. Coinbase has confirmed the SEC investigation, which started during the Biden administration and has continued under the Trump administration. The company’s chief legal officer, Paul Grewal, clarified that the investigation pertains to a metric that was discontinued two and a half years ago and that they have been transparent about their current metric of ‘monthly transacting users.’ Despite the SEC’s concern over the claim of ‘100+ million verified users’ in 2021 marketing materials, Coinbase ceased reporting this figure in 2022. The SEC’s probe persists despite dropping an enforcement lawsuit against Coinbase in 2023. Coinbase has enlisted the help of law firm Davis Polk & Wardwell to navigate the investigation. In a separate incident, Coinbase disclosed a $20 million extortion attempt where cybercriminals used overseas agents to leak user data. Coinbase opted not to pay the ransom but will reimburse victims of phishing attacks resulting from the breach, with estimated costs ranging from $180 million to $400 million.