Sam Bankman-Fried accused of fraud by SEC

The U.S. Securities and Exchange Commission on Tuesday filed a civil complaint accusing Sam Bankman-Fried of "orchestrating a scheme to defraud equity investors in FTX" and seeking to ban him from the cryptocurrency industry.

What to watch: This comes ahead of criminal charges that will be announced later this morning by prosecutors for the Southern District of New York.

The SEC — which filed the complaint in a New York federal court — also noted that SBF is expected to face criminal charges.

Why it matters: A growing number of media reports and statements from FTX's new CEO and Bankman-Fried himself have suggested that customer funds have been improperly accessed by the company's top brass.

Catch up quick: On Monday night, before he was set to testify remotely at a House Financial Services Committee hearing, Bahamian authorities arrested Bankman-Fried at the request of U.S. prosecutors. The two countries have an extradition treaty.