Another Blow to Cryptocurrency Tether from the SEC

The US Securities and Exchange Commission (SEC) fined Friedman LLP, the former auditor of Tether. The US Securities and Exchange Commission (SEC) continues to increase its pressure and sanctions on cryptocurrencies and companies.

The US Securities and Exchange Commission issued its latest enforcement action against Friedman LLP, a New York-based accounting firm that provides audit services for stablecoin issuers. In a recent order, the SEC imposed a $1.5 million penalty on Friedman LLP, the former auditor of the market's largest stablecoin, Tether. Stating that the firm was found to have engaged in various instances of improper professional conduct in the audits of two companies between 2017 and 2020, the US Securities and Exchange Commission stated that Friedman LLP was charged with serial violations of federal securities laws. "In its investigation of Friedman LLP's audits of Chinese grocery chain iFresh and another unnamed company, the accounting firm failed to design and perform appropriate audit procedures and failed to exercise due professional care. We also found that Friedman LLP lied about conducting its audits in accordance with the standards of the Public Company Accounting Oversight Board." The SEC said in its order that Friedman LLP does not deny the SEC's charges and has agreed to resolve these issues and will pay a fine of $1.5 million as well as training for staff. While cryptocurrency Tether was not mentioned in the SEC's order against Friedman LLP, the largest stablecoin Tether (USDT) worked with the New York-based accounting firm until 2018. However, in those years, Friedman LLP had parted ways with the firm for a Tether spokesperson who noted that it did not provide a fast enough audit. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!