I’m currently dealing with a serious issue with my broker, and...

I’m currently dealing with a serious issue with my broker, and I’m seeking advice or shared experiences from fellow investors.

In November 2024, my online broker allowed me to sell shares of Palisade Bio Inc Contingent Value Rights (CVR) NASDAQ, a non-tradable security, without warning or clarification. Three weeks later they reversed the sale, claiming the CVR should not have been available for trading. The proceeds from this erroneous sale I used to buy other stocks in good faith.

Subsequently, my broker repurchased the CVR shares without my consent or notification, which created a negative balance of AUD 16,659.11 in my account. They’ve now given me a deadline of January 31, 2025, to either deposit funds or sell off my holdings to settle this debt.

This situation has left me financially constrained and emotionally distressed. I am deeply concerned about their handling of my account and their overall trustworthiness:

• I fear that broker's actions have compromised my financial standing through no fault of my own.
• They have threatened to sell my holdings on a first-in, first-out (FIFO) basis if the debt is not covered by the deadline, which could result in further financial loss.
• I no longer feel confident in their platform’s reliability or their ability to act in the best interest of their clients.

This ordeal has not only impacted my trading ability but has also made me question whether the broker platform is secure or trustworthy.

Has anyone faced a similar issue where a broker’s error led to financial liability for the client? What steps can I take to protect my investments and escalate this matter to appropriate authorities?

I’d appreciate any advice, suggestions, or experiences from the community.

Thank you for your time!