Binance Australia hit with multimillion-dollar penalty after retail investor losses

Binance Australia Derivatives, operated by Oztures Trading, has been fined $6.9 million after a court found it incorrectly classified over 85% of its clients as wholesale investors between July 2022 and April 2023, according to a Friday press release published by the Australian Securities and Investments Commission (ASIC).

The misclassification exposed 524 retail investors to risky crypto derivative products without required safeguards, resulting in over $8 million in losses and fees.

Binance admitted to major compliance failures, including flawed onboarding processes, insufficient staff training, and poor oversight by senior compliance staff. Clients were able to repeatedly attempt qualification quizzes until passing, and some were approved without proper verification.

In addition to the fine, Binance paid $9 million in compensation and must cover ASIC’s legal costs.

“All financial services companies must follow the law from day one, and have proper client onboarding systems and processes in place. This includes financial services that relate to crypto and digital assets,” ASIC stated.

ASIC launched an investigation into Binance’s Australian derivatives operations in 2022. The probe resulted in the cancellation of Oztures’ financial services license in April 2023 and the shutdown of its derivatives business.

Binance said in a statement that the fine addressed a historical matter involving clients who had been mistakenly classified.

The company noted that it identified and reported the issue to the regulator and fully remedied it in 2023. At the same time, Oztures voluntarily surrendered its license and ended its derivatives operations.

While its Australian case was resolved, Binance is now confronting fresh scrutiny in the US after reports alleging it processed nearly $2 billion through accounts linked to Iran, prompting a DOJ probe.

Binance has denied wrongdoing, asserting that the reporting was false, damaging, and misleading, and has filed a lawsuit against The Wall Street Journal over an article published in February 2026 that it claims triggered unnecessary government investigations and harmed its reputation.