Catalyx Halts Trading and Withdrawals, Claims Employee Breach

Calgary-based crypto exchange Catalyx has “temporarily” suspended trading and withdrawal services following a security breach.

Hacker sitting infront of a digital globe, making transactions.
Created by Gabor Kovacs from DailyCoin
  • 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 Breach

In 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.”

Read why crypto exchange Bitzlato recently suspended withdrawals:
Crypto Exchange Bitzlato Halts ‘Special Balance Withdrawals’

Stay updated on Hong Hong’s recent crypto exchange scandal:
JPEX Inaugurates Asset Lock-Up Plan as Probe Intensifies

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.