ChainCatcher reported that according to The Block, 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 exchage FTX.
The SEC alleges that Prager Metis "misrepresented" FTX's financial condition and failed to comply with generally accepted auditing standards (GAAS) in two audit reports submitted between February 2021 and April 2022. In addition, the company did not fully disclose the potential risks of the relationship between FTX and Alameda Research.
