Arman Shirinyan
The world’s largest exchange is prepared to compensate however, not everyone is eligible.
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Binance has stated that it will pay for the losses suffered by traders whose positions were incorrectly shut down by the exchange on Tuesday. The error was due to an error in classification. only a few Australian users were mistakenly classified in the Binance system as “Wholesale Investors” in Binance and resulted in their derivative accounts being shut immediately, in line the Australian rules.
The affected users have been approached by Binance The exchange promised them that they will be offered all compensation for losses that occur when trading derivatives through their platform. Binance has stressed that every customer is valued by them, and they’re communicating with affected customers to discuss the compensation plans.
We have already reached out to all affected users and will completely reimburse them for any loss incurred when dealing in derivatives through Binance.
— Binance (@binance) February 23, 2023
According to reports, approximately 500 customers were affected by the classification error This classification error affected around 500 users, and Binance has taken corrective action to ensure compliance with local laws. The compensation is only applicable to the affected Australian customers, who suffered losses as a result of the closure of their derivative positions with Binance.
Binance has stated its commitment to ensure compliance of every aspect of its business with applicable rules and regulations of the jurisdictions in which they operate. The exchange has said that it will remain committed to providing the most secure and safe trading environment to all customers and will take the necessary measures to stop these errors from occurring at any time in the near future.
Despite the exchange’s intention to cover all losses it suffered recently certain investors voiced their fears about similar situations occurring in the near future, which isn’t a great choice for the biggest and most well-known cryptocurrency exchange in the market.
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Please note that the opinions shared here are for informational purposes and not meant to be considered investment advice. Each writer expresses their own views, which may not necessarily reflect those of the platform. All investments and trading carry risks, so it is important to conduct thorough research before making any decisions. It is important to only invest money that you can afford to lose, as this author & Financial Futruism is not responsible for any financial losses resulting from investments or cryptocurrency trading.
