Australian Court Slaps Binance Subsidiary with $10 Million Fine for Customer Misclassification

BlockBeats News, March 27th, according to The Wall Street Journal, the Federal Court of Australia has ruled that Binance's local derivatives arm must pay an additional 10 million Australian dollars (about 6.9 million U.S. dollars) in fines. This fine is in addition to the approximately 13.1 million Australian dollars in compensation that Binance had already paid to affected customers by 2023.

The Australian Securities and Investments Commission (ASIC) pointed out that the division had misclassified 524 retail investors as wholesale clients from July 2022 to April 2023, exposing them to high-risk derivatives without the protection of consumer laws, resulting in over 12 million Australian dollars in losses and costs. ASIC Chairman Joe Longo stated that this outcome serves as a clear warning to financial services providers seeking to operate in Australia. A Binance spokesperson mentioned that the issue had been rectified in 2023, and its affiliated subsidiary, Oztures, had ceased its derivatives business and surrendered its license.