Catalyx Crypto Exchange Suspend Withdrawals and Trading Following a ‘Security Breach’

In a December 28 report, the prominent crypto exchange in Canada, Catalyx, indefinitely suspended withdrawals, depository services and all trading activities following a security breach incident. The discovery of the security breach forced Catalyx to take decisive actions to address the matter. 

In the report, the Catalyx team claimed that the employees fell victim to the exploit, leading to the loss of a substantial amount of funds. The embattled crypto exchange regretted that the hackers stole customers’ funds, dragging the company to financial woes. 

Catalyx Suffers a Security Breach

Upon contacting Catalyx to inquire about the severity of the security breach, the crypto exchange failed to disclose the exact amount that was stolen. However, as a security measure, the Catalyx team confirmed that the withdrawal and trading services will be unavailable during the downtime. 

In the report, the crypto exchange confirmed that the investigation is ongoing in an attempt to recover the lost fund. The Catalyx team stated that in the ongoing investigation, the crypto exchange has partnered with intelligence units, law enforcers and other crypto firms.

Reportedly, the disgraced crypto exchange confirmed engaging a team from Deloitte to track the transfer of the lost assets. The collaboration with the Deloitte team aimed to examine the nature of the security breach and identify the system vulnerabilities on Catalyx trading platforms. 

Catalyx Suspends Operations

Also, the Catalyx team is working with the Alberta Securities Commission to bring down the bad players. In a December 21 report, the commission advised the exchange to temporarily shut down operations for 15 days to proceed with a thorough investigation concerning the security breach.

In response to the security breach, the Catalyx team took precautionary measures to inform the customers of the hacking incident. On the Catalyx website, the crypto exchange stated that following the security breach, the system was suffering from technical issues. 

However, the Catalyx team assured customers that the technical team was fixing the technical challenge and would keep the user up to date. In the report, the Catalyx team anticipate that normalcy will resume as soon as possible. 

Elsewhere, the chief executive of Jae Ho Lee agreed with the commission’s advice and suspended Catalyx operations until January 15. The executive stated that for the last five years, the exchange has operated as a regulated entity and has fulfilled the Canadian National Financial Intelligence Agency’s (FINTRAC) requirements.

A review of the Catalyx report demonstrated that in May 2021, the crypto exchange generated $28 million, a 73% increase month over month.

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