Coinbase, the largest U.S. crypto exchange, faces scrutiny from the SEC regarding allegations of inflating user numbers in past disclosures, coinciding with a recent insider-led data breach. The breach involved rogue customer service staff leaking sensitive user information after accepting bribes, affecting less than 1% of users. Despite these challenges, experts believe Coinbase's long-term trajectory won’t be significantly harmed. They compare the situation to past challenges faced by other firms like Facebook and Twitter. Additionally, the SEC investigation is viewed as a continuation from the previous administration, and some insiders argue that the changes in user metrics were made voluntarily for clarity rather than dishonesty. Meanwhile, Coinbase recently celebrated its inclusion in the S&P 500, marking a positive milestone amid these complications. The company also announced a $2.9 billion acquisition of options exchange Deribit, showcasing its ongoing growth and commitment to the crypto market.

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