The SEC has accused FTX of being a "house of cards" built on a "foundation of deception," in a statement.
The SEC released charges on Tuesday morning, accusing Bankman-Fried of a "years-long" fraud.
In its complaint, the SEC announced it had charged the FTX cofounder, Sam Bankman-Fried, with "orchestrating a scheme to defraud" FTX investors.
SEC Chair Gary Gensler said in the statement: "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."
The director of the SEC's Division of Enforcement, Gurbir S. Grewal, accused FTX of operating "behind a veneer of legitimacy" that was created by Bankman-Fried, per the Tuesday press release.