Many cryptocurrency firms are counting their exposure to millions in the troubled exchange.
The U.S. Securities and Exchange Commission (SEC) is stepping up scrutiny of the work audit firms do for cryptocurrency companies, a senior official at the U.S. Securities and Exchange Commission (SEC) told The Wall Street Journal today.
“We’re warning investors to be very wary of some of the claims being made by crypto companies,” SEC acting chief accountant Paul Munter told the magazine in an interview.
The SEC did not immediately respond to a Reuters request for comment on the report.
The developments come as FTX’s implosion rippled through the industry, hampering liquidity for companies that had access to one of the world’s largest cryptocurrency exchanges and prompting investigations by regulators in multiple countries.
Last month, FTX filed for U.S. bankruptcy protection and its founder Sam Bankman-Fried stepped down as CEO after rival exchange Binance walked away from a proposed acquisition.
Several cryptocurrency firms have since been bracing for the fallout from the FTX debacle, with many counting their exposure to the troubled exchange in the millions.
(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)
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