Bankrupt crypto exchange FTX's former auditing firm Prager Metis has been accused of violating U.S. auditor independence rules by the Securities and Exchange Commission, a Friday
The SEC alleges the firm helped its clients – including 62 entities registered with the regulator – to break federal securities laws. It seeks an injunction against the auditor and wants it to pay fines and give up any profits made from illegal activity.and reported $1 billion in revenues in 2021, CoinDesk reported in November, on the same day that FTX filed for bankruptcy in the U.S. – with a $7 billion shortfall on its balance sheet.
According to Friday's filing with the U.S. District Court for the Southern District of Florida, Prager Metis violated auditor independence standards by entering into agreements that included indemnification provisions – where clients agreed to release Prager from liabilities and costs from its services"attributable to any knowing misrepresentations by management."“Auditor independence is critical to both protecting the integrity of financial reporting and promoting public trust.
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
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