The US-based cryptocurrency exchange Kraken has been fined AU$8 million (US$5.1 million) for illegally offering margin trading to Australian customers. The firm had offered the margin product to more than 1,100 Australians without first undergoing the process to determine if the products were appropriate for retail customers.The more than 1,100 customers lost more than US$5 million. While some of the customers were likely sophisticated investors, Kraken made no effort to limit the product to such a group. Around 81% of the customers who used Kraken’s margin product lost money.This is far from Kraken’s first run-in with regulators. The company has settled with US regulators over sanctions violations and failure to comply with securities regulations pertaining to its staking product. They also have an open lawsuit from the US SEC over alleged unregistered securities offerings and commingling corporate and customer funds.