FTX Auditor Prager Metis Settles SEC Negligence Charges for $1.95M

The settlement resolves allegations of misconduct in auditing the collapsed crypto exchange and violations of auditor independence rules.

Prager Metis agreed to pay $1.95 million to settle two SEC cases alleging negligence and misconduct in its audits of FTX.
The SEC accused Prager Metis of falsely representing compliance with generally accepted auditing standards in its reports for FTX.
The settlement includes $745,000 in civil penalties for the FTX audits and $1.2 million for violating auditor independence rules.
The SEC stated that Prager Metis failed to understand FTX's relationship with Alameda Research, contributing to the defrauding of investors.
As part of the settlement, Prager Metis will retain an independent consultant to review its auditing policies and face restrictions on accepting new clients.