Canadian Cryptocurrency Exchange Catalyx Suspends Trading and Withdrawals Due to Security Issue
Catalyx, a Canadian cryptocurrency exchange, has temporarily halted all trading activities and withdrawals after discovering a security issue. The exchange’s operator, CatalX CTS Ltd., suspects that an employee may have been involved in the incident. However, the exact amount of cryptocurrency lost in the hack has not been disclosed.
Catalyx Faces Crypto Loss Amid Investigation
The Alberta Securities Commission recently filed a cease-trade order against Catalyx and its co-founder, Jae Ho Lee. The commission initiated an investigation into the exchange due to suspicions of employee involvement in the security breach. This breach resulted in a loss of customer cryptocurrency assets.
In response to the incident, Catalyx issued a statement acknowledging the security breach and expressing concerns over potential employee involvement. Canadian regulators also ordered Catalyx to cease selling cryptocurrency contracts and launched their own investigation into the matter.
CataX Engages Deloitte For Forensic Inquiry
Catalyx has enlisted the services of international financial auditing firm Deloitte LLP to conduct a forensic investigation into the security breach. The exchange plans to provide updates on the inquiry once Deloitte concludes its investigation.
Catalyx was established by Jae Ho Lee in Calgary in 2018 and is registered with FINTRAC, Canada’s national financial intelligence agency. In June 2021, the exchange reported $28 million in monthly trading volume, experiencing significant growth during a bull market period.
Hot Take: Security Breach Highlights Ongoing Risks in Crypto Industry
The recent security breach at Catalyx serves as a reminder of the persistent risks faced by cryptocurrency exchanges and their users. Despite efforts to enhance security measures, hackers continue to target these platforms, resulting in substantial losses for both the exchanges and their customers.
As the cryptocurrency industry grows, it becomes crucial for exchanges to prioritize robust security protocols and employ external auditors to ensure the safety of user funds. Additionally, regulatory bodies need to enforce stricter guidelines and conduct thorough investigations into security breaches to protect investors and maintain trust in the crypto market.
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