Double Whammy: Hack Attack & SEC Probe Send Coinbase Shares Plunging 7%  

TradingKey– Coinbase stock tumbled over 7% amid dual crises of a security breach and regulatory scrutiny.  

On Thursday (May 15), shares of Coinbase (COIN), the world's second-largest crypto exchange, nosedived at the U.S. market open before paring some losses, ultimately closing down 7.2% at $244.  

Coinbase Stock Chart, Source: Google.

The sell-off came as Coinbase confirmed a data breach exposing customer information, though the company refused to pay the hackers' $20 million ransom demand. Industry analysts estimate potential losses from the leak could reach $400 million.  

Simultaneously, the SEC continues investigating Coinbase for allegedly inflating user metrics, specifically questioning its claim of over 100 million "verified users." The probe, initiated during the Biden administration, has persisted into the Trump presidency.  

Coinbase's Chief Legal Officer stated: "The SEC's inquiry relates to a discontinued reporting metric from 2.5 years ago. We believe this investigation lacks merit and are working vigorously to resolve it."

The company has retained Davis Polk & Wardwell LLP for counsel and maintained ongoing dialogue with regulators, according to sources familiar with the matter.