The suit seeks compensatory and punitive damages, as well as the return of what it says are Friedberg’s ill-gotten gains, including the bonus and large grants of so-called “Samcoins.”

There are far more damning allegations in the suit, though, from a criminal liability standpoint,. One is the claim that Friedberg falsified a set of accounting standards and practices to show to investors ahead of a supposed FTX IPO in 2021. According to the debtor suit, Friedberg used “off the shelf” documentation of accounting controls, which was allegedly never even shown to employees, much less actually implemented as a real policy. This alone seems worthy of disbarment and criminal fraud action.

The claimants also have somehow gotten their hands on Signal messages showing Friedberg personally directing what is, prima facie, money laundering – a “round trip” of funds loaned from Alameda, funneled through executives, then disguised as a “stock investment” to be put back in Alameda. Given what we now know, this seems like an effort to take FTX customer funds and “clean” them for use as Alameda operating funds.

“ ... Friedberg instructed the same amount should be transferred from emergent@placeholder.com back to Alameda Research Ltd. as a “stock purchase.” As Friedberg explained, “it is just a round trip - from AR to Sam/Gary to Emergent back to AR Ltd.” e. Friedberg further flagged for the employees executing the transactions that “we’re going to have to do this a few times over the next few days.”