Samuel Bankman-Fried, a Bay Area native and son to two Stanford professors, has been arrested in the Bahamas and is being federally charged with various counts of fraud in connection to his cryptocurrency exchange FTX.

Prosecutors in the U.S. District Court for the Southern District of New York unsealed an indictment on Tuesday, Dec. 13, that charges Bankman-Fried with eight counts, including wire fraud on customers and lenders, and conspiracy to commit commodities fraud, security fraud, money laundering and to violate campaign finance laws.

The U.S. Securities and Exchange Commission (SEC) also announced on Tuesday that it was civilly charging Bankman-Fried for allegedly defrauding FTX investors in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934.

According to the SEC, FTX raised over $1.8 billion, with Bankman-Fried representing the company as a "safe, responsible crypto asset trading platform." The SEC alleges that Bankman-Fried concealed from investors that FTX customers' money was being diverted to his privately-held cryptocurrency hedge fund, Alameda Research LLC, which was being given special treatment on FTX.

"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 in a press release. "The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws."

Bankman-Fried's parents — Joseph Bankman and Barbara Fried — both teach at Stanford Law School and have drawn scrutiny for their connections to their son's business ventures.

This story will be updated.