While we await the trial of the century—scheduled for October, if it happens at all—we have at least one man’s view about what Sam Bankman-Fried is alleged to have done. John J. Ray’s second interim report, filed at the tail end of June to the FTX independent directors and in the Delaware bankruptcy court, is a doozy. And yet it artfully delineates the true legal headaches that S.B.F. faces as he remains cooped up in his parents’ Palo Alto ranch house.

Ray, of course, is FTX’s C.E.O., having replaced S.B.F. at the time of the bankruptcy filing last November. In his latest report, titled The Commingling and Misuse of Customer Deposits at FTX.com, Ray lays blame squarely at the feet of both S.B.F. and the company’s former principal internal attorney, Daniel Friedberg, whom FTX is now suing for fraud. Ray’s report claims that some $8.7 billion of cash and stablecoins that customers deposited were “misappropriated.” He writes that the “image” that FTX and S.B.F. “sought to portray” as the “customer-focused leader of the digital age” was a “mirage.” And here’s the money shot: From its “inception,” Ray alleges, FTX “commingled customer deposits and corporate funds, and misused them with abandon.” (S.B.F. has maintained his innocence.)