SEC, Justice Department charge FTX's Sam Bankman-Fried

The U.S. Securities and Exchange Commission and the Justice Department on Tuesday charged the founder and former CEO of the defunct cryptocurrency firm FTX, Sam Bankman-Fried, with multiple counts, including defrauding investors.

Southern District of New York federal prosecutors indicted Bankman-Fried on eight criminal charges, including conspiracy and wire fraud, CNN reported.

Shortly before the Justice Department charges, the SEC filed a complaint alleging that Bankman-Fried raised more than $1.8 billion from investors since May 2019, but he secretly diverted the funds to his private crypto group, The Associated Press reported.

The charges come one day after he was arrested in the Bahamas.

"We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto," SEC Chair Gary Gensler said.