SEC Takes Legal Action Against FTX Auditor

THE SECOND alleged that Prague Metis, A accounting farm engaged by bankruptcy crypto exchange FTX In 2021, engaged hundreds of violations related has Listener independence.

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THE United States Securities And Exchange Commission (SECOND) has begin legal procedure against A accounting farm that had provided services has cryptocurrency exchange FTX Before has It is bankruptcy declaration.

According to has A September 29 statement, THE SECOND alleged that Prague Metis provided audit services has It is clients without maintain THE necessary independence, as he continued has offer accounting services. This practical East forbidden below THE Listener independence frame.

Extract Since THE DRY September 29 statement. Source: SEC

HAS prevent Conflicts of interest, accounting And Audit Tasks must be guard clearly separated. However, THE SECOND complaints that these entwined activities stepped over on A period of approximately three years:

"As alleged In OUR complaint, on A period of almost three years, Prague audits, Comments, And exams fell short of these fundamental principles. OUR complaint East A important reminder that Listener independence East crucial has investor protection."

While THE statement doesn't explicitly mention FTX Or any of them other clients, he do emphasize that there were allegedly "hundreds" of Listener independence violations all along THE Three years period.

Furthermore, A previous court deposit sharp out that THE FTX Band engaged Metis has Audit FTX WE And FTX has a few indicate In 2021. Afterwards, FTX declared bankruptcy In November 2022.

THE deposit alleged that Since ancient FTX CEO Sat Bankman-Fried publicly announcement previous FTX Audit results, Metis should...