FTX's auditing firm Prager Metis has reached a $1.95 million settlement with the U.S. SEC

ChainCatcher news, according to The Block, the auditing firm Prager Metis has reached a settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to pay $1.95 million to resolve allegations of negligence in its audit of the now-defunct cryptocurrency exchange FTX.

The SEC accused Prager Metis of making "false statements" about FTX's financial condition in two audit reports submitted between February 2021 and April 2022, failing to comply with Generally Accepted Auditing Standards (GAAS). Additionally, the firm did not adequately disclose the potential risks associated with the relationship between FTX and Alameda Research.