Coinbase's stock price fell 7.2% due to a data breach and SEC investigation

ChainCatcher news, cryptocurrency exchange Coinbase (COIN.O) shares fell by 7.2%. According to The New York Times, the U.S. Securities and Exchange Commission (SEC) is investigating whether the company has falsely reported user numbers, focusing on the "verified user" data released around its 2021 IPO.

On the same day, Coinbase disclosed that it had experienced a data breach. Hackers obtained personal information of less than 1% of monthly active users by bribing overseas customer service personnel, but no passwords, private keys, or funds were involved. In response to the hackers' $20 million ransom demand, Coinbase refused to pay and announced the establishment of a reward fund of the same amount to assist in the arrest of the related criminals, while also promising compensation for affected users. Coinbase expects the data breach to result in losses of up to $400 million.