Canadian Crypto Exchange Catalyx Suspends Trading and Withdrawals, Citing a Security Breach That “May Involve an Employee”
Canadian exchange Catalyx has suspended some of its services.
The exchange claimed a security breach.
An investigation is reportedly underway to resolve the matter. Canadian crypto exchange Catalyx has temporarily suspended trading and withdrawal services on its platform following what the company termed a “security breach.”Founded by its now-CEO Jae Ho Lee in 2018, Catalyx is a Calgary-based digital assets trading platform registered with Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC).Catalyx Suspends Trading and Withdrawals After Security BreachIn a press release dated December 28, Catalyx announced that its management had recently discovered a security breach on the platform, which it believes “may involve an employee” and has resulted in the loss of a “portion of crypto assets” held by the exchange on behalf of its clients.
Following this realization, Catalyx consented to a cease trade order issued by the Alberta Securities Commission against the exchange and its CEO concerning the matter on December 21. The exchange further suspended its key services.“Due to the Loss, all crypto and fiat currency withdrawals from the Platform and all trading activities on the Platform have been temporarily suspended. The Company will provide an update to its customers upon the conclusion of Deloitte LLP's investigation. Further updates will be provided on this matter when available,” the statement read.In the meantime, Catalyx has urged users on its websites to beware of “technical difficulties” and that its team was “working diligently” to resolve them as soon as possible.As for the cease trade order, the Alberta securities watchdog sealed all evidence submitted at the hearing convened on December 21 “until a Notice of Hearing arising from the Investigation is issued.”