The regulator alleges that Prager issued two audit reports for FTX between February 2021 and April 2022 that falsely represented auditing standards.
Accounting firm Prager Metis has agreed to settle with Securities and Exchange Commission (SEC) charges of misconduct related to audits of the now-defunct crypto exchange FTX.
According to a Sept. 17 announcement, the firm will pay $745,000 in penalties to settle to resolve two actions. The SEC claims that Prager misrepresented compliance with auditing standards and failed to assess risks tied to FTX’s connection with its sister hedge fund, Alameda Research. The final agreement is subject to court approval.
The regulator alleges that Prager issued two audit reports for FTX between February 2021 and April 2022 that falsely represented they met Generally Accepted Auditing Standards (GAAS). The company failed to follow GAAS and its own policies by not determining whether it had the competence and resources to conduct the audits on FTX.
