Coinbase Stock Soars Despite Data Breach and SEC Probe
Coinbase, a leading crypto exchange, has seen its stock rise to $247.45 in after-hours trading, marking a 19.52% increase over the past five days. This comes amidst a series of events, including a data breach, an SEC investigation, and a significant acquisition.
The recent data breach at Coinbase has been estimated to cost the company between $180 million and $400 million. In response, Coinbase has offered a $20 million reward for information leading to the arrest and conviction of the attackers. It was revealed that a small group of insiders was bribed to steal customer data, which was then used for social engineering attacks. Fortunately, less than 1% of Coinbase's monthly transacting users were affected.
Coinbase is set to join the S&P 500 on May 19, a significant milestone for the cryptocurrency industry. This move comes as the industry faces challenges in addressing security issues and regulatory hurdles to achieve maturity. Meanwhile, the SEC is investigating Coinbase over potential misstatements in past user number disclosures. The investigation, initiated by SEC Chair Gary Gensler, was not publicly known before the previous administration. Coinbase has also made a strategic move by acquiring derivatives platform Deribit for $2.9 billion.
Despite the recent data breach and SEC investigation, Coinbase's stock has shown resilience, trading at $247.45 after hours. The company's planned entry into the S&P 500 and the acquisition of Deribit demonstrate Coinbase's commitment to growth and innovation in the crypto space.
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