Canadian crypto exchange Catalyx faced a suspension of all trading activity, deposits and withdrawals after it fell victim to a security breach earlier this month.
Crypto Exchange Catalyx Suspends Operations After Security Breach Leads to Loss of Funds
The breach resulted in an undisclosed amount of customer funds being compromised. CatalX CTX Ltd., the organization behind the exchange, launched an internal investigation to determine the scope of the breach and identify potential culprits, including the possible involvement of an employee.
Catalyx was forced to halt all trading activity and financial transactions on its platform due to a security incident. The breach reportedly resulted in the loss of customer funds, although the exact amount was not disclosed.
CatalX CTX Ltd. is actively investigating the security breach to determine the extent of the security breach and gather information about those responsible. The investigation is examining several aspects, including the possibility that an employee was involved in the violation.
In response to the security breach, Canadian regulators intervened. The Alberta Securities Commission issued a 15-day freezing order on Catalyx, restricting trading of crypto contracts.
The freezing order will expire on January 5, and Catalyx CEO Jae Ho Lee has reportedly agreed to comply with the regulatory directive.
*This is not investment advice.