SEC Targets Prager Metis Over FTX Audit Failings: What This Means For Crypto Oversight
Portfolio Pulse from Murtuza Merchant
The U.S. Securities and Exchange Commission (SEC) has taken legal action against Prager Metis, the former auditor of cryptocurrency exchange FTX, accusing it of professional misconduct and non-compliance with the Public Company Accounting Oversight Board (PCAOB) standards during its audit of FTX's financial statements for 2021 and 2022. The SEC alleges that Metis failed to spot and rectify material misstatements in FTX's financial records and did not sufficiently gauge the risks of material misstatement arising from potential fraud.
October 02, 2023 | 4:39 pm
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The SEC's legal action against Prager Metis, the former auditor of FTX, could potentially impact the reputation and trustworthiness of FTX, which may in turn affect the price of FTTUSD.
The SEC's allegations against Prager Metis, if proven true, could raise questions about the accuracy and reliability of FTX's financial statements. This could potentially lead to a loss of trust among investors and users of FTX, which could negatively impact the price of FTTUSD in the short term.
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