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Catalyx Stops All Crypto Trading Operations Following A Security Breach
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Catalyx Stops All Crypto Trading Operations Following A Security Breach

Catalyx crypto trading platform has suspended all trading and fund withdrawal operations on its platform, which was recently affected by a security breach.

CataX CTS Ltd., the Calgary-based company operating Catalyx, made this announcement on Thursday.

The suspension follows a cease trade order issued on Dec. 21 by the Alberta Securities Commission against the company and co-founder Jae Ho Lee.

As the security breach resulted in a loss in some of Catalyx customers’ crypto assets, the company launched an investigation with suspicion that an employee was involved in the incident.

“Management suspects that this security breach, which may involve an employee, has resulted in the loss of a portion of the crypto assets held by the Company on behalf of its clients,” Catalyx wrote in a Dec. 28 statement. 

See Also: Bitzlato Temporarily Suspend All Bitcoin Withdrawals Due To Legal Battles

Catalyx did not disclose how much of its crypto assets had been lost to the breach. But said,

“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 crypto exchange added that it was investigating the losses and had engaged consulting firm Deloitte to help get to the bottom of the incident. 

Global financial auditing firm Deloitte LLP will “provide forensic and investigative services to the company” in examining the incident, CataX said. 

The firm plans on updating its users after Deloitte finishes the investigation, the company noted in the statement.

The official Catalyx website currently features a warning banner, advising users that its platform is suffering “technical difficulties,” and that it would alert users when regular functions had been restored.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.