The U.S. SEC has filed a lawsuit against FTX's auditing firm Prager Metis

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) has begun legal action against the auditing firm Prager Metis, which provided services to the cryptocurrency exchange FTX before it announced bankruptcy.

According to a statement on September 29, the SEC claims that Prager Metis provided auditing services to clients without maintaining the necessary independence, as the firm allegedly continued to provide accounting services. This practice is prohibited under the auditor independence framework, which requires a clear separation of accounting and auditing tasks to prevent conflicts of interest. However, the SEC claims that these activities spanned approximately three years: there were allegedly "hundreds" of violations of auditor independence during that entire three-year period.