FTX's former auditing firm Prager Metis is being sued by the U.S. SEC

ChainCatcher news, according to a recent court document, FTX's former auditing firm Prager Metis has been accused by the U.S. Securities and Exchange Commission of violating U.S. auditor independence rules. The SEC alleges that the firm helped its clients (including 62 entities registered with the regulatory agency) violate federal securities laws. Prager Metis had audited FTX's international division, reporting that FTX's revenue for 2021 was $1 billion, on the same day that FTX filed for bankruptcy in the U.S., with a balance sheet gap of $7 billion.

Furthermore, the SEC's complaint is not focused on the auditing firm's relationship with FTX, but rather on the agreements the firm made with its numerous clients.