SEC Takes Legal Action Against Prager Metis for Audit Violations

The SEC has filed a legal complaint against accounting firm Prager Metis, alleging that it committed numerous violations related to auditor independence while providing services to cryptocurrency exchange FTX before its bankruptcy. The SEC claims that Prager Metis offered auditing services while also providing accounting services, which is prohibited under auditor independence rules. The violations allegedly spanned over a three-year period, and the SEC emphasizes that there were "hundreds" of violations. Concerns have also been raised about the impartiality of Prager Metis and another law firm, Fenwick & West, in relation to their services for FTX.