According to ChainCatcher, the auditing firm Prager Metis has reached a settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to pay $1.95 million to resolve allegations of negligence in its audit of the now defunct crypto exchange FTX.

The SEC accused Prager Metis of "falsely stating" FTX's financial status in two audit reports submitted between February 2021 and April 2022, and failing to comply with generally accepted auditing standards (GAAS). In addition, the company did not fully disclose the potential risks of the relationship between FTX and Alameda Research.