Coinbase confirms Biden-era SEC probe over ‘verified users’ is still ongoing

By: bitcoin ethereum news|2025/05/16 05:30:07

The US Securities and Exchange Commission (SEC) is investigating Coinbase to determine whether it misrepresented the number of users on its platform. Coinbase confirmed the news on May 15 after a New York Times article revealed the probe and reported that it had been ongoing since the Biden administration. The report, combined with the exchange revealing details about a recent scam issue being caused by internal breaches, led to a 6% slide in its share price. Verified users The exchange disclosed that the SEC is investigating its previously reported “verified users” metric, a figure that has appeared in company filings and marketing material and once topped 100 million. Coinbase Chief Legal Officer Paul Grewal said in a statement to CNBC: “This is a holdover investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public.” He explained that the now-retired metric counted users who verified an email or phone number, potentially overstating the number of unique customers. Grewal added that Coinbase has since shifted to reporting “monthly transacting users,” a metric still disclosed in its earnings reports, and said the company is working with the SEC to close the investigation. Shifts at the SEC The inquiry is unfolding as the SEC undergoes a leadership shift under President Donald Trump’s administration, which has taken a more crypto-friendly posture compared to its predecessor. However, the continuation of the probe suggests lingering regulatory scrutiny over crypto firms’ disclosures and public-facing data. The company’s challenges deepened after it revealed a security breach involving stolen customer information and a $20 million ransom demand. Coinbase said the incident could cost up to $400 million to address, adding to investor concerns. Despite the setbacks, Coinbase has made significant strides in recent weeks. The exchange announced an acquisition aimed at expanding its global presence and is set to enter the S&P 500 index next week. During its recent first-quarter earnings call, CEO Brian Armstrong said the company intends to become “the No. 1 financial services app in the world” within five to ten years. Source: https://cryptoslate.com/coinbase-confirms-biden-era-sec-probe-over-verified-users-is-still-ongoing/

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