First up, The Deep Dive, November 15:
FTX’s Auditors Apparently Could See No Holes In The Failed Crypto Exchange’s Story
New revelations seem to be issued daily about the collapse of the crypto exchange FTX. However, one issue which has received little attention is who were the auditors which signed off on what now appear to be the fictitious books of FTX and FTX.US.
It seems that the auditing firm Prager Metis worked with FTX Trading LLC, FTX’s international business, and that the accounting firm Armanino performed the 2020 and 2021 audits on FTX.US. Based in New York City, but with offices across the U.S. and internationally, Prager Metis, a private company, has more than 100 partners and principals, according to its website.
The firm does not list any of the clients for which it provides auditing services. A Google search likewise does not identify any companies that utilize Prager’s services.
Armanino, also NYC-based, meanwhile claims it is a top-25 accounting and consulting firm in the United States. It likewise does not identify any of its auditing clients on its website; a Google search for the names of clients is similarly fruitless....
....MUCH MORE
And via Going Concern, January 11, 2022:
Prager Metis Just Spent $35k So They Can Service Clients In the Metaverse
We have officially arrived into the dystopian future ’80s sci-fi movies warned us about: accounting firms are now planting their flags on the metaverse.
Prager Metis International LLC, a New York-based accounting and advisory firm, on Friday said it opened a virtual three-story property on a site it bought for nearly $35,000 in late December. The firm, which operates 23 physical offices in the U.S., Europe and Asia, made its purchase on the Decentraland platform in partnership with Banquet LLC, a firm that funds and manages blockchain ventures....
....MUCH MORE, including a pic of the HQ building.
Also via Going Concern:
We Feel Obligated to Tell You About This Forensic Accountant Turned ‘Professional Girlfriend’
And from CoinDesk November 11:
Meet the Metaverse Nightclub–Loving Audit Firm That Presided Over FTX’s Financials
....“I don’t know anything about FTX,” said Jerry Eitel, the partner emeritus and chief metaverse officer at Prager Metis. “I’m retired,” Eitel added, before disconnecting on the phone. (Eitel is a one-time CoinDesk contributor.) The head of Prager Metis’ audit practice could not be reached for comment.....
Here's more Mr. Eitel on the opening of the Metaverse office.
