TechFlow News, March 27: According to Cointelegraph, the Federal Court of Australia ordered Oztures Trading Pty Ltd (Binance Australia Derivatives) to pay a A$10 million (approximately USD $6.9 million) penalty. The court found that, between July 2022 and April 2023, the company incorrectly classified over 85% of its Australian customers as wholesale clients, exposing 524 retail investors to high-risk crypto derivatives without the requisite protections—resulting in cumulative trading losses of USD $6.3 million and fee losses of USD $2.6 million.
Binance also admitted to multiple compliance breaches, including failure to provide product disclosure statements to retail clients, failure to complete target market determinations, and failure to establish a compliant internal dispute resolution mechanism. This penalty follows a prior USD $9 million customer compensation order issued in November 2023. The Australian Securities and Investments Commission (ASIC) has issued a statement regarding this case; Binance has not yet responded to requests for comment.
