One Of The Auditors For FTX Was Sued By An Investor Losing Almost $20,000

Prager Metis CPAs LLC, which is one of the auditors for FTX that built its headquarters in the metaverse was accused in a lawsuit of turning a blind eye to a pattern of racketeering at FTX, leading to a loss of billions of dollars.

Prager Metis CPAs LLC, an auditor for FTX, the cryptocurrency exchange that collapsed causing billions of dollars in losses, was sued by an investor who claims to have lost almost $20,000, but the accounting firm declined to comment on the lawsuit. Additionally, the investor also accused Prager Metis of a racketeering conspiracy due to a now-deleted post on the company’s website, published in June 2022 said Prager Metis was “Proud to promote FTX US” and uploaded a picture of Prager Metis and FTX representatives at a baseball game.

Much of the lawsuit relies on a sworn declaration in FTX’s bankruptcy proceedings from John J. Ray III, who famously oversaw the liquidation of Enron Corp. Ray stated

In his 40-year career, he’s never seen such a “complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”

However, Prager Metis issued certified audit reports giving FTX US and FTX clean bills of health in March, according to the lawsuit.

It is the most recent legal action that brought charges against Bankman-Fried and FTX as a result of the collapse of the exchange. Prior lawsuits also targeted famous people who promoted the platform.

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