ASIC Files Legal Action Against Binance Australia Derivatives
On December 18, the Australian Securities and Investments Commission (ASIC) filed legal action against Binance Australia Derivatives for alleged consumer protection failures. In a news release, ASIC claimed that the crypto derivatives trading platform had misclassified over 500 retail clients as wholesale investors between July 2022 and April 2023. By classifying the retail clients as wholesale investors, ASIC asserts that Binance Australia Derivatives stripped these clients of legal protections afforded under Australian financial laws. The regulator described this action as ‘woefully inadequate’ and emphasized that retail clients are entitled to stronger consumer protections.
More on the Misclassification
This misclassification likely resulted in significant harm to retail investors, who may have been at a disadvantage due to the lack of protections intended for them. ASIC’s filing highlights how such errors can undermine consumer confidence in financial platforms and expose individuals to unnecessary risks. The regulator has sought to address these issues by pursuing legal action against Binance Australia Derivatives, aiming to ensure compliance with consumer protection regulations.
Interpol Issues Red Notice for Hex Founder
On December 22, Interpol, the world’s largest international police organization, issued a Red Notice for the founder of Hex, Richard Schueler — also known as Richard Heart. The notice mandates global law enforcement to provisionally arrest Schueler and provide a preliminary list of wanted fugitives based on his involvement in tax fraud and assault of a 16-year-old victim.
Background on Hex
In addition to listing Schueler on the wanted fugitive list, Interpol provided more details about the charges against him, including allegations of tax fraud and the sexual assault of an underage individual. These details were included in a previous report by Dong-A Ilbo, a South Korean news outlet, which also revealed that Hex was already listed on Europe’s most-wanted fugitives list with similar allegations.
Tornado Cash Dev Asks to Have Charges Dropped
Roman Storm, the co-founder of crypto mixing platform Tornado Cash, has sought for his charges against him to be dropped after a court ruling indicated that the Treasury’s Office of Foreign Assets Control (OFAC) had exceeded its authority in sanctioning Tornado Cash’s smart contracts.
The Case Against OFAC
In his December 18 motion in the Manhattan District Court, Storm argued that a separate case found OFAC’s actions to be "illegal and fatally flawed." According to the ruling, the charges against OFAC are based on invalid legal grounds, making all three counts of the indictment legally unsound. This decision could potentially clear the path for Roman Storm’s defense in his ongoing legal battle with Tornado Cash.
South Korean Lawyer Fined for Hidden Crypto Holdings
Kim Nam-kuk, a South Korea National Assembly member, is facing a six-month jail sentence for allegedly not reporting his entire cryptocurrency holdings to the government. The details of the case suggest that Kim reported total crypto holdings worth 1.2 billion Korean won ($825,600) in 2023 but failed to disclose larger amounts held under various pseudonyms.
The Financial Implications
The revelation comes amid growing scrutiny in South Korea of cryptocurrencies and their impact on public finances. Kim’s failure to report significant crypto holdings could have had implications for his political career, potentially leading to accusations of financial misconduct or corruption.
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