Why was FTX illegal?

Could you please elaborate on the reasons why FTX was deemed illegal? Were there specific regulatory violations that led to its downfall? Was it due to a lack of transparency in its financial dealings, or was it something more sinister like fraud or market manipulation? Understanding the intricacies of why FTX crossed the legal line is crucial in order to prevent similar incidents from occurring in the future. So, could you provide a detailed breakdown of the legal issues that plagued FTX?