Binance has announced that it will fully compensate for the losses of traders who had their positions accidentally closed by the exchange yesterday. The incident occurred due to a classification error, where a small number of Australian users were incorrectly identified as “Wholesale Investors” in Binance, leading to their derivative positions being closed immediately in accordance with Australian regulations.

The affected users have already been contacted by Binance, and the exchange has assured them that they will receive full compensation for any losses incurred while trading derivatives on their platform. Binance has emphasized that every user is important to them, and they are in contact with the affected users to finalize plans for compensation.

We have already contacted all impacted users and will fully compensate them for their losses incurred while trading derivatives on Binance.

— Binance (@binance) February 23, 2023

It has been reported that around 500 users were affected by this classification error, and Binance has taken the necessary remedial action to comply with the local laws. The compensation is applicable only to the impacted Australian users, who suffered losses due to the forced closing of their derivative positions on Binance.

Binance has expressed its commitment to ensuring the compliance of all its operations with the applicable regulations and rules of each jurisdiction in which they operate. The exchange has stated that it will continue to provide a safe and secure trading environment for all users and that they will take all measures necessary to prevent such errors from happening in the future.

Despite the exchange’s desire to compensate for all losses that occurred recently, some investors expressed their concerns over similar situations potentially happening in the future, which is not a good look for the biggest and most popular cryptocurrency exchange on the market.