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Canadian crypto exchange Catalyx faces security breach and client asset loss

Canadian crypto exchange Catalyx faces security breach and client asset loss

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TL;DR

  • Catalyx crypto trading platform faces a security breach resulting in the loss of client funds, with suspicion of employee involvement.
  • Alberta Securities Commission issued a 15-day freeze order against CatalX, prompting a halt in all trading activities and an ongoing investigation.
  • CatalX initiates an internal investigation, engages Deloitte LLP for support, and promises updates to customers as the situation unfolds.

CatalX CTS Ltd., the operator of the Canadian crypto trading platform Catalyx, has reported a security breach that resulted in the loss of a portion of crypto assets held on behalf of clients. The company’s management suspects the involvement of an employee in this incident. The breach prompted the issuance of a cease trade order by the Alberta Securities Commission against the company and its CEO, Jae Ho Lee.

Temporary suspension of crypto and fiat activities

Due to the security breach, CatalX has temporarily suspended all crypto and fiat currency withdrawals from its platform, halting all trading activities. This move aims to contain any further potential losses and protect the interests of the platform’s users. Also, the company is taking decisive action in response to the incident and is actively investigating the matter.

Regulatory response and investigation

Canadian regulators have responded promptly to the security breach at Catalyx. Last week, the Alberta Securities Commission ordered the cessation of all trading of crypto contracts and initiated an investigation into the company. CEO Jae Ho Lee consented to the 15-day freeze order issued by the regulatory body, which is set to expire on January 5.

According to a recent press release, CatalX is currently conducting its own internal investigation into the security breach. To bolster this effort, the company has engaged the services of Deloitte LLP to provide forensic and investigative support. The collaboration with a reputable firm like Deloitte reflects CatalX’s commitment to a thorough and transparent examination of the incident.

CatalX has pledged to inform its customers about significant findings or developments as the investigation progresses. The company anticipates providing updates upon the conclusion of Deloitte LLP’s investigation. Platform users are advised to stay tuned for further communications regarding the resolution of the security breach and the resumption of normal trading and withdrawal activities.

Conclusion

The Catalyx security breach has raised concerns among crypto traders and investors, leading to the temporary suspension of various platform activities. The loss of crypto assets and the involvement of an employee in the breach have triggered both internal and regulatory investigations. CatalX is navigating this challenging situation by prioritizing transparency and collaboration with regulatory authorities to safeguard the interests of its clients.

The temporary freeze on trading activities is a precautionary measure to prevent additional losses and ensure a comprehensive examination of the incident. As the investigation unfolds, stakeholders await further updates on the extent of the breach and the steps CatalX will take to enhance its security measures.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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