FTX auditor fined $2 million by SEC to settle negligence allegations

Prager Metis CPAs has agreed to wage $1.95 cardinal to settee 2 U.S. Securities and Exchange Commission (SEC) actions alleging misconduct successful its audits of FTX and violations of auditor independency rules, according to a Sept. 17 statement.

The colony addresses negligence-based fraud charges related to FTX audits and abstracted charges for violating auditor independency rules.

Jorge G. Tenreiro, Acting Chief of the SEC’s Crypto Assets and Cyber Unit, emphasized:

“Once much we spot an entity, lured by the siren opus of the crypto plus markets, cutting corners connected its obligations to comply with the law.”

The SEC claims Prager misrepresented compliance with Generally Accepted Auditing Standards (GAAS) successful 2 FTX audit reports from February 2021 to April 2022.

Additionally, the steadfast allegedly failed to measure its competency for the FTX audit and didn’t recognize the risks associated with the exchange’s narration with Alameda Research.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, added that Prager’s audits were conducted without owed care, resulting successful FTX investors lacking important protections erstwhile making their concern decisions.

Without admitting oregon denying the findings, Prager agreed to imperishable injunctions, a $745,000 civilian punishment for the FTX-related charges, and remedial actions, including an autarkic advisor reappraisal of its audit procedures.

In a abstracted settlement, the Prager Entities agreed to resoluteness erstwhile charges of violating auditor independency rules, paying $1 cardinal successful civilian penalties and $205,000 successful disgorgement with prejudgment interest.

The settlements are taxable to tribunal approval, and the SEC’s probe into Prager’s FTX audits is ongoing.

The station FTX auditor fined $2 cardinal by SEC to settee negligence allegations appeared archetypal connected CryptoSlate.