The arrest of and criminal charges against ex-FTX CEO Sam Bankman-Fried could be a defining moment for securities regulators, who have until this point seen cryptocurrency crooks slip through their fingers, Bloomberg reports.

U.S. authorities, including the Securities and Exchange Commission and Commodities Futures Trading Commission, are applying warp-speed cybersecurity measures to existing laws against money laundering and securities and wire fraud, to nab crypto fraudsters.

One of the biggest heads-on-a-stake for the feds is James Zhong, who, a decade ago, at the age of 17, accidently figured out how to steal $3.36 billion in inflated Bitcoin. Zhong, who will finally be sentenced in February, eluded law enforcement by comingling Bitcoin with other cryptocurrencies, shielding his transactions through a tangle of internet protocol addresses, and trading on overseas crypto exchanges.

While he eluded authorities, Zhong lived the life of the rich and famous. He flew on private jets, owned prized cars, partied with the young and beautiful, and invested millions in Memphis commercial real estate.

In November, Zhong pled guilty to one count of wire fraud. He now faces up to nearly three years in jail.

The SEC has charged Bankman-Fried with stealing $1.8 billion from his customers—but that just scratches the surface of cryptocurrency and other investment fraud, according to government estimates.

In 2020, the government recovered $3.6 billion in Bitcoin stolen from crypto exchange Bitfinex.

The Federal Trade Commission in June said 46,000 people reported losing $1 billion from investment scams in the 15 months ended in March. And that’s just by those who came forward to report the thefts.

The government may finally be dispelling the impression that the cryptosphere is a lawless arena and that it is toothless against its pirates.

How the Bankman-Fried/FTX case plays out could set a new benchmark for crypto investor protection and is worth following closely.