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.

ChainCatcher news, the liquidity re-staking protocol Renzo stated on its social platform that multiple auditing firms are auditing the code of the mainnet withdrawal contract of the protocol. Some of the auditing work is expected to be completed by May.

ChainCatcher news, official news, the ZK L2 network ZKFair has passed comprehensive audits by two auditing firms, Secure3 and ScaleBit, and the audit reports have been uploaded to GitHub for public display.It is reported that the audited content of ZKFair includes five items: ZKFair system contracts, ZKFair cross-chain bridge services, ZKFair chain node services, ZKF staking contracts, and Gas Fee Sharing contracts, etc.ZKFair is the first L2 network based on Polygon ZK and Celestial DA, supported by computing power from Lumoz.

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.

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.

ChainCatcher news, the reserve proof of the dollar stablecoin TrueUSD was audited by The Network Firm, which was previously named Armanino and had collaborated with SBF to audit FTX.US. Armanino's digital asset team rebranded as The Network Firm to continue auditing and certification after the FTX bankruptcy.Previously, Armanino's 2021 audit did not provide opinions on the internal controls over financial reporting for FTX.US or FTX Trading. (CoinDesk)

ChainCatcher news, according to Forbes, FTX provided a list of companies it does business with to Forbes at the end of August, which includes over 53 auditing firms, banks, and insurance companies. When asked by Forbes whether they were involved in recent events related to FTX, most of the aforementioned institutions either refused to be exposed or declined to comment.Forbes revealed that FTX has over 1 million users, accounting for about 1% of Coinbase's active customer base, but FTX primarily serves institutional accounts, with an average customer fund size exceeding $640,000, while retail trading platforms have an average customer fund size of about $3,000 to $5,000. (source link)

Chain Catcher News, the SEC last week charged Tether's former auditing firm Friedman LLP with "continuous violations of federal securities laws" and a series of "improper professional conduct." In the SEC's investigation into Friedman LLP's audits of two publicly traded companies, it was found that the auditing firm falsely claimed to conduct audits in accordance with the standards of the Public Company Accounting Oversight Board.The order released by the SEC on Friday detailed the widespread sloppy accounting practices of Friedman LLP from 2015 to 2020, including the failure to "address fraud risks" and to "exercise due professional care and professional skepticism." Friedman LLP provided auditing services for Tether from May 2017 to January 2018. (CoinDesk)