FTX Auditor Settles $1.95M With SEC over Independence Violations
CryptoNewsTerminal Staff17 Sep, 2024
FTX Auditor Settles $1.95M With SEC over Independence Violations
Prager Metis, FTX's former auditor, has settled with the SEC for $1.95 million over allegations that it violated auditor independence rules and aided and abetted client violations of federal securities laws. The settlement includes a $745,000 penalty related to Prager Metis' audit of FTX. The SEC said the firm violated independence rules during its audits of more than 200 clients from 2017 to 2020. "In the case of FTX, in particular, the firm failed to adequately assess the exchange's ability to perform accounting functions and the resources devoted to those functions, essentially rubber-stamping the financial statements of an overmatched client," the SEC said.
