Crypto Exchange Catalyx Faces Security Breach, Freezes Operations

• An employee is believed to be involved in the security breach as per the statement.
• Deloitte is reportedly conducting an audit of the cryptocurrency exchange.

A security compromise was reported on Thursday by Catalyx, a crypto trading platform based in Canada. In this case, the cryptocurrency assets held by the exchange are at risk of being lost.

The cryptocurrency exchange’s operator, CatalX CTS Ltd., issued a statement stating that an employee is believed to be involved in the security breach. The Canadian platform has seen a disruption in routine trading and withdrawal activities due to the events.

Trading and Withdrawals Halted

In accordance with the temporary halt order on December 21, 2023, the Alberta Securities Commission (ASC) declared the admissibility of evidence to be concealed.

The exchange stated:

“Due to the Loss, all crypto and fiat currency withdrawals from the Platform and all trading activities on the Platform have been temporarily suspended.”

Sections 33 and 198 of the Securities Act (Alberta) were used to issue the order, which requires the respondents to refrain from trading or buying any derivatives or securities for a period of fifteen days. Without an extension from the Commission, the order will expire on January 5, 2024.

Allegedly, Deloitte is conducting an audit of the cryptocurrency exchange, which has temporarily halted all trading and withdrawals.

At this time, a warning banner on the official Catalyx website informs visitors that the platform is experiencing “technical difficulties,” and that it will notify customers when normal functionality is back up. 

Currently serving as CEO, Jae Ho Lee established the exchange in 2018. The exchange is registered with FINTRAC, the national financial intelligence organization of Canada.

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