Sam Bankman-Fried, the embattled co-founder and former CEO of collapsed crypto exchange, FTX, has been charged by the US Securities and Exchange Commission (SEC) for fraud.

The SEC filed the charges on Tuesday following the arrest of Bankman-Fried in Bahamas where he was expected to appear before a magistrate court. The charges said Bankman-Fried defrauded regulators in “a house of cards” style, raising more than $1.8 billion from equity investors since May 2019 by promoting FTX as a safe, responsible platform for trading crypto assets.

In addition, the civil complaint says that Bankman-Fried diverted customer funds to Alameda Research LLC, his privately-held crypto fund, without telling them. The complaint also says Bankman-Fried commingled FTX customers’ funds at Alameda to make undisclosed venture investments, lavish real estate purchases, and large political donations.

“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,” said SEC Chair Gary Gensler in a statement.

Bankman-Fried has been under investigation by the US authorities following the collapse of FTX last month. The multibillion dollar exchange filed for bankruptcy on November 11 after it failed to raise a bailout fund as traders rushed to withdraw $6 billion fund in 72 hours.

The former CEO has blamed the company’s implosion on ignorance and oversight, maintaining that he committed no fraud even as more information emerged – pointing to potential fraudulent transactions.

The SEC said separate charges would be announced by the U.S. Attorney’s Office for the Southern District for New York and the Commodity Futures Trading Commission later on Tuesday.

In a statement, the SEC said it would seek a director and officer bar and a penalty against Bankman-Fried, and to prevent Bankman-Fried from participating in future securities purchases, offers and sales except for his personal account and a civil penalty, among other actions.

Police in the Bahamas, where FTX was based, said the 30-year-old was arrested after 6 p.m. on Monday (2300 GMT) at his luxury gated community called the Albany in the capital, Nassau.

Damian Williams, the U.S. Attorney for the Southern District of New York, said in a statement on Monday evening that the arrest came at the request of the U.S. government, a day he’s expected to testify before Congress.

Though he claimed not to have enough information on what really led to FTX’s collapse, Bankman-Fried had agreed to testify before the House Financial Services Committee at the request of the chairwoman Rep. Maxine Waters.

The Committee is expected to proceed with the hearing despite his arrest. But Rep. Waters said she was “disappointed” that the American public, and FTX’s customers, would not get to see Bankman-Fried testify under oath.

The Bahamas’ attorney general’s office said it expects him to be extradited to the United States.

FTX’s implosion has once ignited calls for the regulation of the crypto industry. Gensler said “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.”

Exactly what is a virtual private network? You’ve probably heard about it before, but do you know what it means? The acronym “VPN” refers to the virtual private network that allows users to connect securely across a public network.

Virtual private networks encrypt data transmissions and mask users’ information. A safe and reliable VPN provider will make it harder for hackers to keep tabs on your online movements and steal your information.

To safely connect your device to the Internet, you can use a virtual private network. You may use this encrypted link to access remote servers for business or play without worrying about prying eyes.

A VPN is an excellent option that can be used in conjunction with other security measures to boost online security and privacy. Read on for more information on virtual private networks and how they might help you!

1.  VPNs encrypt your traffic.

Virtual private networks (VPNs) primarily function by encrypting data in transit. Connecting to a virtual private network encrypts all your traffic and makes it far more difficult for anyone to snoop on your online activity.

A decryption key is required to decipher the information. Without it, a machine attempting a brute-force assault would need millions of years to crack the code. A virtual private network allows you to remain anonymous when using public Wi-Fi.

2.  VPNs can mask your IP address.

Another way that VPNs function is by hiding your IP address. Your IP address is a unique identifier issued to your computer when you connect to the internet. Virtual private networks give you a new IP address and redirect your traffic through their servers. You’ll be much harder to keep tabs on in the virtual world.

3.  VPNs can help you access blocked websites.

Virtual private networks can allow you to bypass regional restrictions on the use of certain websites. As an illustration, a VPN may be used to bypass censorship by connecting to a server in a nation where your target website is accessible. This would be useful, for instance, if you were attempting to access a website from China but were barred from doing so. Content on the internet that is exclusive to a region is not necessarily available worldwide. Sometimes, some regions of the world are restricted from accessing particular services and websites. When you use a regular connection, your location is determined by servers located within your country. This implies you will be unable to see stuff from your home country while abroad, and vice versa. Through the use of a virtual private network, you may shift your online presence to another nation.

4.  VPNs can improve your privacy.

Virtual private networks (VPNs) can shield your internet activity from spying eyes. Whenever you connect to a website, your browser normally communicates some information to the server you are visiting. However, while using a VPN to access the web, all this data is transmitted to the VPN service’s servers. This makes it more difficult for non-trusted entities to keep tabs on your web browsing habits.

5.  VPNs can increase your security.

A strong VPN verifies each user’s identity using multiple authentication factors. A code might be delivered to your phone once you enter a password, for instance. This makes it more challenging for anyone who isn’t authorized to do so to gain access to your private network.

Lastly, virtual private networks (VPNs) improve safety by shielding users from online threats. Someone else on a public Wi-Fi network could be spying on your traffic or injecting harmful malware into the websites you visit. But with a virtual private network, you may avoid this problem since your data travels over an encrypted tunnel.

A VPN can create an encrypted tunnel between your device and the VPN server. With a virtual private network, your data transmissions are encrypted before reaching their destination. When you utilize the internet, your IP address will be hidden, and your location will be concealed.

A virtual private network connection is safe from outside interference. Because only you have the key to decrypt the encrypted tunnel, no one else can read the information contained.