The US Securities and Exchange Commission (SEC) has reached a settlement with audit firm Prager Metis, requiring them to pay $1.95 million to address misconduct allegations related to their audits of the now-defunct cryptocurrency exchange FTX. As part of the agreement, Prager Metis and its California affiliate will pay a civil penalty of $745,000 and implement corrective actions, including hiring an independent consultant to review their audit and quality control procedures. The SEC accused Prager of failing to comply with auditing standards while auditing FTX, resulting in significant deficiencies. The regulator emphasized the importance of auditors maintaining independence and professional skepticism. Prager Metis also faced charges for violating auditor independence rules and aiding client violations of federal securities laws, leading to additional penalties. The SEC's actions serve as a warning to auditors to uphold legal obligations and ensure investor protection in the crypto space. Read more AI-generated news on: https://app.chaingpt.org/news

#SEC