Krutika Adani
FTX is suing Binance over a $1.76 billion buyback, claiming it was an illegal transaction during; g FTX's insolvency.
The clawback process, backed by the Sarbanes-Oxley Act, allows recovery of fraudulent or unlawful payments.
FTX argues that ex-CEO Sam Bankman-Fried’s buyback of FTX shares from Binance was fraudulent, as the company was allegedly bankrupt.
FTX claims Binance’s token dump in November 2022 fueled its collapse and accelerated its bankruptcy.