Waves of fallout from the collapse of cryptocurrency trading platform FTX continue to ripple, as accounting firm Prager Metis has learned.
The firm agreed to pay nearly $2 million in penalties to settle two enforcement actions by the Securities and Exchange Commission (SEC) related to Prager Metis’ audit work for FTX. The SEC said the firm committed “negligence-based fraud” by falsely represented that its audits of FTX complied with generally accepted accounting standards (GAAS), and violated its own policies and procedures by not adequately assessing whether it had the competency to audit FTX, the agency announced in a press release Tuesday.
