Wall Street watchdog to tighten bolt on audit firms assessing crypto companies: Report
After back-to-back bankruptcies of several cryptocurrency exchanges and mines, the latest being the FTX Group and Core Scientific, the Wall Street watchdog has decided to tighten bolt around the work that audit firms carry for cryptocurrency companies. The development takes place on concerns of the possibility of investors getting a false sense of reassurance from the audit reports of these crypto companies.
In an interview with the Wall Street Journal, Paul Munter, the SEC’s acting chief accountant said, they're warning investors to be very wary of some of the claims that are being made by crypto companies. He added that they are increasing their understanding of what’s going on in the marketplace.
According to Munter, SEC is looking closely at how crypto companies are portraying their reports from audit firms. As many of these crypto companies are based offshore, so they are unlikely to fall under the regulator's remit. Hence, the watchdog is warning audit firms who do not want to run afoul of the regulator and put investors on alert.
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