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Pressure on cryptocurrencies rises in the US

The U.S. Securities and Exchange Commission (SEC) has reportedly increased scrutiny of audit firms’ work for cryptocurrency companies. The SEC official stressed that investors should not rely too heavily on a cryptocurrency company saying it has received proof of reserve from an audit firm.

Pressure on cryptocurrencies rises in the US

In an interview with the Wall Street Journal, SEC Official Paul Munter stated that reports from audit firms of crypto money companies are closely examined.

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Stating that the SEC has sent an effective warning to audit firms and alarmed investors, Munter noted that they warned investors to be very careful against some claims made by crypto money companies.

Munter stated that they are particularly worried about the evidence of reserves aimed at showing that crypto companies have enough assets to meet customers’ funds, noting that the companies have been in a hurry to prepare these reports recently, using the credibility of audit firms to try to reassure customers who fear the collapse of crypto exchange FTX.

The SEC official stressed that investors should not rely too heavily on a cryptocurrency company saying it has received proof of reserve from an audit firm.

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