In a move to address a significant security breach, Canadian cryptocurrency exchange Catalyx has taken the drastic step of suspending all trading activities and withdrawals on its platform. The breach, suspected to involve an internal actor, has caused undisclosed losses to the company’s crypto assets. Catalyx made the announcement on December 28th, revealing concerns over a potential breach perpetrated by one of its employees. The exchange did not disclose the extent of the losses incurred due to the breach.
The suspension affects both cryptocurrency and fiat currency withdrawals, leaving users unable to access their funds temporarily. This decision comes in response to the suspected loss of a portion of the crypto assets held by the exchange on behalf of its clients. The Alberta Securities Commission, in response to the breach, issued a directive on December 21st, instructing Catalyx to halt all trading activities. An investigation into the exchange’s security protocols was also initiated.
To address the breach and investigate the losses, Catalyx has enlisted the expertise of consulting firm Deloitte. The exchange aims to swiftly resolve the incident and restore normal operations. Visitors to the Catalyx website are greeted with a warning banner indicating ongoing technical difficulties. The exchange assures users that it will notify them once operations are back to normal.
Founded in 2018 by current CEO Jae Ho Lee, Catalyx is headquartered in Calgary and is registered with FINTRAC, the Financial Transactions and Reports Analysis Centre of Canada. The exchange had seen significant growth, boasting $28 million in monthly trading volume during a bull market in May 2021. Despite this, current public data on Catalyx’s reserves or trading volume is not available through crypto data aggregators. The exchange’s focus now lies in mitigating the impact of the security breach and restoring trust among its users.