Binance’s failures left 524 clients collectively poorer by almost $9 million. Photo: Shutterstock

Binance Australia has been fined $10 million after misclassifying hundreds of retail clients as wholesale investors, exposing them to high-risk crypto derivatives that led to millions in losses.

The Australian Securities and Investments Commission (ASIC) said the cryptocurrency firm took $3.89 million in fees from 524 inadequately vetted clients, who collectively lost $8.66 million trading complex products meant for professional investors.

Between July 2022 and April 2023, Binance repeatedly breached its obligations as an Australian Financial Services Licence (AFSL) holder, allowing retail investors into volatile…