Catalyx crypto exchange ceases all trading after security breach
CataX CTS Ltd., the Calgary-based company operating cryptocurrency trading platform Catalyx, has suspended trading and fund withdrawals at the exchange which was recently affected by a security breach, the company said 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.
CataX did not disclose the exact amount of losses, and did not immediately respond to The Block’s email enquiry for further details.
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 security breach at Catalyx crypto exchange has sent shockwaves through the cryptocurrency industry. CataX CTS Ltd., the company behind the exchange, has temporarily suspended all trading and fund withdrawals after the breach, which occurred recently. In response to the incident, the Alberta Securities Commission issued a cease trade order against the company and co-founder Jae Ho Lee.
Following the breach, some of Catalyx’s customers have incurred losses in their crypto assets. The company has initiated an investigation, suspecting the involvement of an employee in the incident. CataX has chosen global financial auditing firm Deloitte LLP to conduct a forensic and investigative examination into the breach. The audit firm will provide its services to CataX as it determines the extent of the breach and works to ensure the security of its platform.
While the exact amount of losses has not been disclosed by CataX, it is clear that significant measures need to be taken to address the situation. Deloitte LLP’s involvement demonstrates the seriousness of the breach and the commitment of CataX to rectify the issue. Once the investigation is completed, CataX plans to update its users on the findings.
Cryptocurrency investors and traders are advised to exercise caution during this period of uncertainty. It is important to keep track of any updates from Catalyx and follow their guidance. Security breaches are an unfortunate reality in the crypto industry, underscoring the importance of maintaining stringent security measures to protect users’ assets.
As CataX works towards resolving the security breach and implementing necessary improvements, they have temporarily suspended trading and fund withdrawals. The crypto industry is closely watching the developments at Catalyx, as the incident raises concerns about the overall security of cryptocurrency exchanges. It serves as a reminder for users to remain vigilant and prioritize the safety of their investments.
In the coming weeks, as Deloitte LLP conducts its investigation, the results will shed more light on the incident at Catalyx. Until then, users are encouraged to exercise patience and await further updates from the company. The aftermath of the breach will likely prompt widespread discussions about the need for stronger security measures within the cryptocurrency industry.
In summary, CataX CTS Ltd. has suspended trading and fund withdrawals on its cryptocurrency trading platform, Catalyx, following a security breach. The exact extent of the breach and the losses incurred by customers are still being determined. Deloitte LLP has been engaged to conduct an investigation into the incident. As the industry awaits updates, it serves as a reminder of the importance of robust security measures within the cryptocurrency ecosystem.
