🧐 Analysis of the potential impact of the SEC's investigation into the false reporting of Coinbase user numbers and data breaches on the cryptocurrency industry: Coinbase faced two consecutive attacks yesterday: While being questioned by the SEC for falsifying user numbers, the outsourcing customer service leaked user information, which could result in a potential loss of $400 million. You may think it has nothing to do with you, but in reality, the impact on the entire industry is far from simple. 🧵 Let me elaborate on my perspective on the Coinbase dual crisis: one ️⃣ Event 1: What is the SEC investigating? The SEC has targeted Coinbase's previously disclosed "verified user" data, questioning whether it has exaggerated the number of users (claimed to be over 100 million). The problem is that many of these "zombie accounts" may only have registered email addresses but no transactions at all. Coinbase's response is also very familiar: This is an old case from the previous dynasty. We no longer use this indicator. What we are disclosing now is' monthly active trading users' But what the SEC is investigating is not what you are using now, but whether you misled investors back then - it's too easy to throw the blame away. ✅ Viewpoint: Although this may not necessarily result in substantial fines, it will bring a slight crack to the trust of the exchange in "disclosure compliance". Focus of investigation: The SEC is investigating whether Coinbase falsely reported the number of "verified users" (previously claimed to have over 100 million users) in its historical disclosure documents. This indicator includes accounts that only verify email/phone numbers but are not actively trading, which may mislead investors' judgment of the actual user base. Coinbase response: The company's Chief Legal Officer stated that this investigation is a "legacy issue of the previous government," and that the relevant indicators were discontinued 2.5 years ago and shifted towards disclosing more relevant data such as "monthly trading users. But the SEC's ongoing investigation may raise concerns in the market about the transparency of the exchange. two ️⃣ Event 2: Impact of Data Breach Event: Data breach incident: What's scarier than 'hackers' is' people' This time it's not the system being hacked, but the customer service outsourcing team being bribed. Hackers bribed overseas employees and obtained sensitive information such as the names, addresses, and ID cards of some monthly active users. ⚠️ Although the private key has not been leaked, for high net worth users, obtaining KYC information is more dangerous than losing coins - as it may pose a real personal threat. Coinbase estimated its losses to be between $180 million and $400 million, and its stock price fell 7.2% on the day. three ️⃣ Potential impact on the cryptocurrency market Short term emotional shock: Coinbase stock price drops! According to the Twitter public opinion provided by SoSoValue @ SoSoValueCrypto, users generally have doubts about the security of centralized exchanges (such as "KYC data leakage may cause physical security risks"). Some investors may turn to decentralized platforms (such as Hyperliquid being mentioned as an alternative). Long term regulatory pressure: unlikely to be transmitted to the market! If the SEC investigation confirms false reporting behavior, it may strengthen the supervision of disclosure standards for cryptocurrency companies and even affect the compliance costs of other exchanges. However, Coinbase's history suggests (such as the withdrawal of the SEC lawsuit in 2023) that legal risks may not necessarily be directly transmitted to Bitcoin prices. four ️⃣ Bitcoin and market indicators correlation: 1) Bitcoin spot ETF fund flow: According to the SoSoValue chart data, the weekly net inflow of Bitcoin ETFs has remained stable recently (Total Bitcoin Spot ETF Net Inflow), and there has been no significant outflow of funds due to the Coinbase event. 2) Bitcoin fundamentals: The current hash rate and price remain high, indicating that network security has not been directly affected by the event. five ️⃣ Conclusion: Local impact: The Coinbase event may suppress the performance of exchange related tokens (such as COIN) and weaken market confidence in the short term, but Bitcoin as an independent asset has not shown any signs of on chain or financial deterioration. Industry warning: The incident highlights the weak links of centralized entities in data protection and compliance disclosure, or accelerates the industry's migration to non custodial solutions.