The Securities and Exchange Commission is stepping up scrutiny of the work that audit firms are doing for cryptocurrency companies, concerned that investors may be getting a false sense of reassurance from the firms’ reports, a senior official at the regulator said.
“We’re warning investors to be very wary of some of the claims that are being made by crypto companies,” Paul Munter, the SEC’s acting chief accountant, said in an interview.
Increased scrutiny has led at least one audit firm to drop crypto clients, in some cases soon after producing reports on the companies’ assets and liabilities. Crypto companies are eager to get the blessing of an auditor to reassure their skittish clients.
The Wall Street watchdog is looking closely at how crypto companies are portraying their reports from audit firms, according to Mr. Munter….
Source: SEC Heightening Scrutiny of Auditors’ Crypto Work – WSJ