Catalyx, a Canadian cryptocurrency exchange, has temporarily ceased all withdrawals and trading activities due to a recent security breach, potentially involving an internal employee.
In a statement released on Dec. 28, Catalyx informed that the breach might have led to the loss of some crypto assets stored on behalf of its clients. The exact amount of assets compromised in the breach remains undisclosed.
In light of this incident, the company has taken the precautionary measure of halting all forms of transactions, including both crypto and fiat currency withdrawals. Additionally, all trading on the Catalyx platform has been suspended for the time being.
This move follows an order issued on Dec. 21 by the Alberta Securities Commission, which demanded a stop to all trading activities on Catalyx’s platform. The order was part of an investigation initiated by the Commission in response to the reported security breach.
To further investigate the matter, Catalyx has enlisted the services of Deloitte, a renowned consulting firm. The goal is to thoroughly understand the breach and mitigate its impact.
As of now, the Catalyx website displays a notice about ongoing “technical difficulties,” assuring users that they will be updated once the platform resumes normal operations.
Founded in 2018 by Jae Ho Lee, who currently serves as its CEO, Catalyx is based in Calgary and is a registered entity with FINTRAC, Canada’s financial intelligence unit.
During a surge in the crypto market in May 2021, Catalyx reported a significant increase in its trading volume. A statement on June 21 of that year highlighted a monthly trading volume of $28 million, marking a substantial 73% growth from the previous month. However, recent data on the exchange’s reserves and trading volumes is not readily available on major crypto data aggregators.