The United States Securities and Exchange Commission (SEC) has initiated legal proceedings against Prager Metis, an accounting firm that had previously provided services to the now-defunct cryptocurrency exchange FTX. According to the SEC, Prager Metis had violated the industry’s independence standards by continuing to offer accounting services over a period of nearly three years. The SEC’s complaint also highlighted that FTX Group had engaged Metis to audit FTX US and FTX at some point in 2021. FTX declared bankruptcy in November 2022. Furthermore, Senators Elizabeth Warren and Ron Wyden raised concerns about the firm’s impartiality, contending that they functioned as advocates for the crypto industry. In addition, a law firm that provided services to FTX has come under scrutiny in recent times. Plaintiffs allege that Fenwick & West can be held liable because it reportedly exceeded the norm when it came to its service offerings to FTX. However, Fenwick & West denies that it can be held responsible as it falls outside the scope of the representation of the client.

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Information	Details
Geography	North America
Countries	🇺🇸 🇯🇵
Sentiment	negative
Relevance Score	8
People	Ron Wyden, Prager Metis, Bankman-Fried, John Ray, Elizabeth Warren
Companies	FTX, Fenwick & West, SEC, Prager Metis
Currencies	US Dollar, Bitcoin, FintruX, Ethereum
Securities	None