SEC initiates legal action against FTX’s auditor

The United States Securities and Exchange Commission (SEC) has actually commenced legal procedures against an accounting company that had actually supplied services to cryptocurrency exchange FTX prior to its bankruptcy declaration.According to a September 29 declaration, the SEC alleged that Prager Metis provided auditing services to its clients without maintaining the needed self-reliance, as it continued to use accounting services.” While the declaration does not clearly discuss FTX or any other customers, it does emphasize that there were presumably “hundreds” of auditor independence infractions throughout the three-year period.Furthermore, a previous court filing pointed out that the FTX Group engaged Metis to examine FTX US and FTX at some point in 2021. The filing declared that considering that previous FTX CEO Sam Bankman-Fried openly announced previous FTX audit results, Metis must have recognized that its work would be used by FTX to strengthen public trust.Related: FTX founders plea for short-lived release ought to be denied, prosecution saysConcerns were previously reported about the material presented in FTX audit reports.On Jan. 25, present FTX CEO John J. Ray III informed a personal bankruptcy court that he had “substantial concerns as to the info provided in these audited financial statements.