Catalyx Exchange Suspends Operations Amid Security Breach Concerns

While the Christmas effect continues in the crypto market, developments in crypto companies keep making the headlines. Accordingly, the Canada-based crypto exchange Catalyx suspended user withdrawals and all exchange activities on its platform after detecting a security breach that might involve one of its employees.

How is the Process Continuing?

In a statement made by the crypto exchange Catalyx on December 28, the company officials did not disclose how much of the crypto assets held within the exchange were lost due to the breach. Catalyx stated the following in its announcement:

“Management suspects that this security breach, which may involve an employee, has resulted in the loss of some of the crypto assets held by the company on behalf of customers.”

Due to the loss experienced in the exchange, all crypto and fiat withdrawal transactions and all trading activities on the platform were temporarily suspended. On December 21, the Alberta Securities Commission ordered the platform to halt all exchange activities and announced that it had initiated an investigation into the security breach.

Noteworthy Details About Catalyx

The crypto exchange stated that it is investigating the losses related to the incident and has engaged consulting firm Deloitte to help get to the bottom of the event. As of the writing of this article, the official Catalyx website currently displays a warning banner informing users that the platform is experiencing technical difficulties and will notify users when normal functions are restored.

The Calgary-based exchange was founded in 2018 by current CEO Jae Ho Lee. The exchange is registered with Canada’s Financial Transactions and Reports Analysis Centre FINTRAC. During the bull market in May 2021, the exchange managed to reach a monthly trading volume of 28 million dollars as of the announcement made on June 21, indicating a 73% increase compared to the previous month.

Currently, however, there is no public data available on the exchange’s reserves or trading volume visible on any crypto data collector.