According to a New York Times report, the U.S. Securities and Exchange Commission (SEC) is investigating whether the Coinbase (Nasdaq: COIN) crypto exchange overstated its user numbers in past filings and public statements.

The stock fell to just above $244, giving up gains from earlier in the week when Coinbase was set to join the S&P 500 index. The drop pushed its 2025 performance back into negative territory. The company said in a filing that on May 11 it received a ransom email from an unidentified actor claiming to have accessed customer account data and internal company files.

The SEC declined to comment on the investigation, but Coinbase told Barron’s in an email, “this is a hold-over investigation from the prior administration about a metric we st