SEC tightens scrutiny of audit firms

192
1
SEC tightens scrutiny of audit firms

A senior official of the regulator told the Wall Street Journal that the U.S. Securities and Exchange Commission SEC is tightening its scrutiny of the work audit firms do for cryptocurrencies companies.

Paul Munter, SEC's acting chief accountant, said that investors should be cautious about some of the claims that are being made by the companies.

The implosion of FTX has prompted investigations by regulators in several countries and has resulted in a lot of problems with firms with exposure to one of the world's biggest criptocurrency exchanges.

FTX filed for U.S. bankruptcy protection last month and its founder Sam Bankman- Fried resigned as chief executive after rival exchange Binance walked away from a proposed acquisition.

Several firms have been bracing for a fallout from the FTX collapse, with many counting their exposure in millions to the beleaguered exchange.