According to ChainCatcher, market sources indicate that the Federal Court of Australia has ordered Oztures Trading Pty Ltd (Binance Australia Derivatives) to pay a fine of AUD 10 million (approximately USD 6.9 million). The court found that between July 2022 and April 2023, the company misclassified over 85% of its Australian clients as wholesale clients, causing 524 retail investors to access high-risk crypto derivatives without adequate protection, resulting in a total of USD 6.3 million in trading losses and USD 2.6 million in transaction fees.
Binance also admitted to several compliance violations, including failing to provide product disclosure statements to retail clients, failing to complete target market identification, and failing to establish a compliant internal dispute resolution mechanism. This fine is an additional penalty on top of a customer compensation order of approximately $9 million issued in November 2023. The Australian Securities and Investments Commission (ASIC) has issued a statement regarding the case, and Binance has not yet responded to requests for comment.
