financial disclosure Archives - Coin Engineer https://coinengineer.net/blog/tag/financial-disclosure/ Btc, Coins, Pre-Sale, DeFi, NFT Fri, 16 May 2025 07:25:17 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://coinengineer.net/blog/wp-content/uploads/2024/04/cropped-Coin-Engineer-Logo-Favicon-2-32x32.png financial disclosure Archives - Coin Engineer https://coinengineer.net/blog/tag/financial-disclosure/ 32 32 Coinbase Hit By Data Breach And SEC Probe, Stock Falls 7% https://coinengineer.net/blog/coinbase-hit-by-data-breach-and-sec-probe-stock-falls-7/ https://coinengineer.net/blog/coinbase-hit-by-data-breach-and-sec-probe-stock-falls-7/#respond Fri, 16 May 2025 08:30:49 +0000 https://coinengineer.net/blog/?p=42499 In the ever-volatile crypto world, not all shocks are about price swings. Some cut deeper, striking at the core of user trust and regulatory confidence. This week, leading crypto exchange Coinbase faced a significant dual crisis that rattled both investors and the industry at large. A data breach involving customer information, coupled with an ongoing

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]]> In the ever-volatile crypto world, not all shocks are about price swings. Some cut deeper, striking at the core of user trust and regulatory confidence. This week, leading crypto exchange Coinbase faced a significant dual crisis that rattled both investors and the industry at large.

A data breach involving customer information, coupled with an ongoing SEC investigation into potentially misleading user statistics from 2021, led to a sharp market response.

Shares Slide 7% Amid Rising Concerns

On the evening of May 15, Coinbase stock dropped by 7%, falling to $244 in after-hours trading. Two simultaneous developments triggered this decline:

  1. An investigation by the Securities and Exchange Commission (SEC) into Coinbase’s previous claim of having over 100 million “verified users” in 2021.
  2. A serious data breach caused by compromised third-party support staff.

The SEC has questioned the accuracy of these user metrics as part of a probe that began during the Biden administration. Coinbase stopped reporting the metric in 2022, opting instead to disclose “monthly transacting users,” which it deems more relevant.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Chief Legal Officer Paul Grewal stated that while Coinbase disagrees with the continuation of the investigation, it will fully cooperate with the SEC to bring it to a close.

coinbase

Ransom Refused, Compensation Expected

In a separate incident, Coinbase revealed that attackers used internal support access to leak data from a limited number of accounts. The attackers demanded a $20 million ransom, which Coinbase firmly refused to pay.

However, the company pledged to compensate affected users, estimating total remediation costs to range between $180 million and $400 million.

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