U.S. SEC files legal action against FTX’s audit firm Prager Metis

Odaily Planet Daily News The U.S. Securities and Exchange Commission (SEC) has filed legal proceedings against an accounting firm that provided services to the cryptocurrency exchange FTX before it declared bankruptcy. According to a statement on September 29, the SEC accused Prager Metis of providing audit services to its clients but failing to maintain necessary independence. To prevent conflicts of interest, accounting and auditing tasks must be clearly separated. However, the SEC said: "For nearly three years, Prager Metis' audits, reviews, and inspections fell short of these fundamental principles. Our prosecution is an important reminder that auditor independence is critical to investor protection." .” A previous court document stated that FTX Group hired Metis to conduct an audit of FTX US and FTX in 2021. Subsequently, FTX declared bankruptcy in November 2022. (Cointelegraph)