Here is Why Crypto Billionaire Sam Bankman-Fried got arrested.

By The Exchange Team

US authorities have charged Sam Bankman-Fried with "one of the biggest financial frauds in US history" in failed crypto exchange FTX.

The former FTX CEO was detained by police in the Bahamas on Monday.

SEC Chair Gary Gensler stated Mr. Bankman-Fried created a "house of cards on a foundation of lies".

Officials have also charged him of violating campaign finance laws.

Mr. Gensler went on to say that the charges for alleged fraud were a warning to other platforms to follow US laws.

The US Attorney's Office for the Southern District of New York and the CFTC also charged Mr. Bankman-Fried.

Mr. Bankman-Fried denied knowing Alameda Research, FTX's associated trading entity, was using customer cash.