A senior official of the regulators told the Wall Street Journal that the U.S. Securities and Exchange Commission SEC is tightening the scrutiny of the work audit firms do for cryptocurrencies companies.
Paul Munter, SEC's acting chief accountant, told investors to be very cautious about some of the claims that are being made by cryptocurrencies companies, according to Paul Munter, SEC's acting chief accountant in an interview with the journal.
The implosion of FTX has rippled through the industry, hobbling liquidity at firms with exposure to one of the world's biggest criptocurrency exchanges, and has prompted investigations by regulators in several countries.
Last month FTX filed for U.S. bankruptcy protection and founder Sam Bankman- Fried resigned as chief executive after rival exchange Binance walked away from a proposed acquisition.
Several crypto firms are bracing for a fallout from the FTX collapse, with many counting their exposure in millions to the beleaguered exchange.