Gate News reports that on March 27, the Federal Court of Australia ruled that a certain CEX’s local derivatives division must pay an additional civil penalty of AUD 10 million (approximately USD 6.9 million). This fine is an additional penalty beyond the approximately AUD 13.1 million in compensation paid by the exchange to affected customers in 2023. The Australian Securities and Investments Commission (ASIC) noted that between July 2022 and April 2023, this division incorrectly classified 524 retail investors as wholesale clients, exposing them to high-risk derivatives without consumer protections, resulting in losses and expenses exceeding AUD 12 million. ASIC Chairman Joe Longo stated that this outcome serves as a clear warning to financial service providers seeking to operate in Australia. A spokesperson for the exchange stated that the issue was rectified in 2023, and the related subsidiary Oztures has ceased derivatives operations and canceled its license.
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