SEC Investigation into Coinbase’s User Claims Raises Concerns Amid Cyberattack and Stock Decline

By: cryptonews|2025/05/16 13:00:12

The ongoing scrutiny surrounding Coinbase has intensified as the SEC challenges the accuracy of its user metrics amidst a recent cyberattack. This dual crisis has not only unsettled investors but also raised significant questions about corporate transparency and accountability in the cryptocurrency sector. According to Cointelegraph, Coinbase’s legal officer stated, “While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close.” Coinbase faces SEC investigation over user metric discrepancies amid a significant cyberattack, raising concerns about transparency and security in the crypto market. SEC Investigation into User Metrics The Securities and Exchange Commission (SEC) is probing whether Coinbase misrepresented its user base, specifically questioning the claim of over 100 million “verified users” made during its marketing efforts in 2021. This investigation traces back to the past administration’s scrutiny and has persisted under current regulations, raising alarms about the firm’s operational integrity. Coinbase’s chief legal officer, Paul Grewal, emphasized that the metric in question was discontinued more than two years ago and claimed that they now focus on more relevant performance indicators. This ongoing inquiry could have far-reaching implications for Coinbase, potentially affecting investor confidence and the stock price. Impact of the Investigation on Market Confidence Investors reacted sharply to the news of the SEC’s investigation, as evidenced by a 7% decline in Coinbase’s stock value within hours of the report. This drop not only reflects concerns regarding the firm’s accountability but also highlights the growing scrutiny facing cryptocurrency exchanges, which are operating in an evolving regulatory landscape. Amidst these challenges, Coinbase has enlisted Davis Polk & Wardwell , a prominent law firm, to navigate the regulatory landscape and ensure compliance with SEC mandates. This legal support indicates the seriousness with which Coinbase is approaching these investigations and could play a crucial role in defining the outcome.

On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.

2025 Full-Year Financial Highlights

Revenue: Expected to be between $39 million and $41 million, reaching a new company high.

Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.

Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.

Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.

Core Consumer Food Business Performance

In 2025, DDC's core consumer food business maintained strong operational performance.

The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.

In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.

Bitcoin Reserve Update

In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.

As of December 31, 2025: The company holds 1,183 BTC.

As of February 28, 2026: Holdings increased to 2,118 BTC

Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC

DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."

Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation

About DDC Enterprise Limited

DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.

The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.

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DDC Enterprise Limited Announces 2025 Unaudited Preliminary Financial Performance: Record Revenue Achieved, Bitcoin Treasury Grows to 2183 Coins