FTX: Of old hackers and new legal moves
Questions arise
The SEC’s allegations center on Prager Metis, the accounting firm in question. According to the SEC, Prager Metis audited FTX while concurrently providing accounting services, thus violating auditor independence regulations.
Long-standing history
Notably, a prior court filing revealed that FTX Group had engaged Metis to audit FTX US and FTX in 2021. FTX eventually declared bankruptcy in November 2022, making it one of the most high-profile crypto exchange collapses in recent memory.
A tale of lawsuits and litigations
Notably, FTX hasn’t been solely on the defensive. The exchange recently took legal action against former employees of Salameda, an affiliated Hong Kong-based entity, in an effort to recover approximately $157.3 million.
