FTX Nightmare in Cryptocurrencies Doesn’t End: SEC Sues Former Financial Auditor!

The US Securities and Exchange Commission (SEC) filed a lawsuit against the former auditor of the bankrupt cryptocurrency firm FTX.

In the cryptocurrency market FTX nightmare It doesn’t end. SEC this time too former auditor of the stock exchange Prager sued Metis. In a lawsuit filed with the U.S. District Court for the Southern District of Florida on Friday, September 29, the regulator said Prager Metis violating auditor independence rules accused him of deceiving customers and the law.

Prager Metis, which operated as the accounting firm of the bankrupt FTX turned a blind eye to the violations taking place within the stock market While emphasizing, in this way, the federal protection of the cryptocurrency exchange violating securities laws It was claimed that it helped.

In a financial audit report of FTX published by Prager Metis in November 2021, the stock market $1 billion It was stated that he was in the snow. But the financial situation that emerged during the FTX bankruptcy was far from these reports and the exchange’s 7 billion dollars It was seen that there was a deficit.

SEC from court against Prager Metis taking precautionary measures he demanded. The SEC, however, said that the former auditor fine payment and profits from illegal activities He asked her to give up.

In the case file submitted to the court, Prager Metis was accused of these violations. at least since January 2019 It was claimed that he was aware of it.

The SEC included the following statements in its case file:

Auditor independence is critical to both protecting the integrity of financial reporting and enhancing public confidence. As alleged in our complaint, over a period of approximately three years, Prager’s audits, inspections, and examinations fell short of these basic principles. Our complaint is an important reminder that auditor independence is vital to investor protection,” Eric I. Bustillo, director of the SEC’s Miami regional office, said in a press release.

Jury selections in the trial of former FTX CEO Sam Bankman-Fried October 3 realization of the day and the founder’s 4 October He is expected to appear in court today.

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