Another Data Breach Occurs As Canadian Crypto Exchange Gets Targeted

CatalX CTS Ltd., the operator overseeing the Canadian crypto trading platform Catalyx, recently disclosed a security breach resulting in the partial loss of crypto assets held on behalf of clients. The company suspects the involvement of an employee in the incident, prompting the Alberta Securities Commission to issue a cease trade order against the company and its CEO, Jae Ho Lee.

Damage control

In response to the security breach, CatalX has temporarily halted all withdrawals of crypto and fiat currencies through its platform, as well as suspended trading activities. This measure is aimed at containing potential further losses and safeguarding the interests of platform users. The company is actively investigating the matter and taking decisive action.

Canadian regulators swiftly responded to the Catalyx security breach, with the Alberta Securities Commission ordering the cessation of crypto contract trading and launching an investigation. CEO Jae Ho Lee agreed to the 15-day freeze order, set to expire on January 5th, 2024. CatalX is also conducting an internal investigation into the security breach and has enlisted Deloitte LLP for forensic and investigative support.

Stay tuned

The company has pledged to keep customers informed of significant findings or developments as the investigation progresses and anticipates providing updates upon the conclusion of the investigation. 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.

The loss of crypto assets and the suspected employee involvement have triggered 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 therefore 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.