SEC Accuses Former Tether Auditor of Serial Violations of Federal Securities Laws

The US Securities and Exchange Commission (SEC) has accused accounting firm Friedman LLP, which provided audit services to the issuer of the stablecoin Tether in 2017, of “serial violations of federal securities laws” and “inappropriate professional conduct.”

The agency found that from 2017 to 2020, when conducting audits for the Chinese grocery store chain iFresh and another unnamed firm, Friedman LLP, did not comply with the standards of the Public Company Accounting Oversight Board.

The auditor is charged with sloppy accounting practices, including his failure to “respond to the risks of fraud” and “exercise due professional care and professional skepticism.”