The Securities and Exchange Commission (SEC) Tuesday brought civil charges against Samuel Bankman-Fried, CEO and co-founder of the crypto trading platform FTX Trading Ltd. US prosecutors also unsealed criminal charges against Bankman-Fried on Tuesday following his arrest in the Bahamas.

The SEC alleges that Bankman-Fried defrauded equity investors and customers of FTX by diverting assets and investments into his privately-held crypto hedge fund, Alameda Research LLC. He then used those funds to make undisclosed venture investments, lavish real estate purchases and large political donations. The SEC also alleges that Bankman-Fried hid his activities from FTX’s equity investors and continued to raise billions of dollars from them in additional funds, which he also diverted into his hedge fund and used for personal purchases and ventures.

The SEC charged Bankman-Fried under Section 77(q)(a) and Section 78(j)(b) of Title 8 of the United States Code. Section 77(q)(a) makes unlawful the sale of any securities with the intent to defraud, obtain money or property by means of untrue statements or omission to state a material fact, or to engage in a transaction, practice, or course of business that operates or would operate as a fraud or deceit upon the purchaser, and Section 78(j)(b) makes the deceptive use of any securities registered or unregistered on the national securities exchange illegal.

In the criminal complaint, the US government brings eight counts against Bankman-Fried, including wire fraud under 18 U.S.C.§ 1343, conspiracy to commit securities fraud under 15 U.S.C. § 78(j)(b) and §78(ff) and conspiracy to defraud the United States and violate the campaign finance laws under 52 U.S.C. § 30109(d)(1)(A) and (D).