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NYTimes
96 days

S.E.C. Investigating Whether Coinbase Misstated Its User Numbers

1. S.E.C. investigates Coinbase for possible user number misstatements. 2. The investigation continues despite the dismissal of a related lawsuit. 3. Coinbase's claim of over 100 million verified users is under scrutiny. 4. The inquiry began during the Biden administration and persists under Trump. 5. Coinbase engaged legal help to manage the investigation.

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FAQ

Why Bearish?

Ongoing investigations can create uncertainty, impacting buyer confidence. Historical examples include Yahoo and Facebook facing FTC scrutiny, which led to stock price declines.

How important is it?

The inquiry directly questions the credibility of Coinbase, affecting investor perception and trust.

Why Short Term?

Legal uncertainties can affect market sentiment quickly. Similar past events show immediate impacts on stock price.

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