Canadian Crypto Exchange CatalX Halts Operations After Security Breach
Canadian cryptocurrency exchange CatalX has temporarily suspended its operations following a suspected insider job that led to a security breach. In a press release, CatalX CTS Ltd., the operator of the exchange, announced the loss of crypto assets held on behalf of its clients. The breach, believed to involve an employee, has prompted the company to comply with a cease trade order from the Alberta Securities Commission.
Investigation and Measures Taken
CatalX is currently investigating the incident and has enlisted the services of Deloitte LLP for forensic and investigative support. As a result of the breach, all crypto and fiat currency withdrawals have been halted, and trading activities have been suspended. The scale of the breach and the extent of losses are still unknown until Deloitte LLP concludes its investigation.
About CatalX
CatalX is a Vancouver-based cryptocurrency exchange that was founded in 2017. Prior to its acquisition by LiteLink Technologies in 2020, it had secured $2 million in funding.
Hot Take: Ensuring Security in Crypto Exchanges
Security breaches in cryptocurrency exchanges highlight the importance of robust security measures. Instances like the one experienced by CatalX serve as a reminder for investors to carefully choose exchanges with strong security protocols in place. Conducting thorough due diligence, such as researching an exchange’s reputation and reviewing their security practices, can help mitigate risks associated with potential breaches. Additionally, exchanges must prioritize employee vetting and implement strict internal controls to prevent insider threats. By taking these precautions, you can enhance your security when engaging in cryptocurrency transactions.
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