**News Flash: Prager Metis Settles SEC Charges Over FTX Audits**

Accounting firm Prager Metis has agreed to pay $745,000 to settle SEC charges related to its audits of the now-defunct crypto exchange FTX. The SEC accused Prager of misrepresenting compliance with auditing standards and failing to assess risks tied to FTX’s connection with Alameda Research.

The firm issued two audit reports for FTX between February 2021 and April 2022 that falsely claimed adherence to Generally Accepted Auditing Standards (GAAS). Prager neither admitted nor denied the findings but will take remedial actions, including hiring an independent consultant to review its policies.

FTX collapsed in November 2022 due to a severe liquidity crisis and allegations of fraud, leading to its bankruptcy and the conviction of founder Sam Bankman-Fried. The SEC emphasized the importance of auditors maintaining independence and professional care to protect investors.