Canadian Crypto Trading Platform Suspends Withdrawals Following Security Breach

Catalyx, a crypto trading platform based in Canada, suffered a security breach that resulted in the loss of customer funds in its custody.

While the exact value of the loss is not mentioned, the platform has halted crypto and fiat withdrawals amid ongoing investigations.

Catalyx Suspends Trading and Withdrawals

CatalX CTS, the operator of Catalyx, announced the incident in a press release, stating that the breach likely involved an employee.

The company investigating the theft also employed the services of audit and consulting giant Deloitte to “provide certain forensic and investigative services.”

Following the loss, users will, in the meantime, not be able to trade or withdraw their assets from the Catalyx platform, as both features are temporarily suspended.

Although the announcement does not state the extent of the loss, other than noting that it is “a portion of crypto assets held by the company on behalf of clients,” CatalyX said it would provide more updates along with the conclusion of Deloitte’s investigation.

“Due to the Loss, all crypto and fiat currency withdrawals from the Platform and all trading activities on the Platform have been temporarily suspended.”

Meanwhile, the announcement comes days after CatalX agreed to a cease trade order by the Alberta Securities Commission on Dec. 21 against the company and its CEO, Jae Park.

According to the Commission, the company will halt the trading and purchasing of any securities or derivatives effectively immediately for 15 days, which will expire on Jan. 5, 2024, unless the regulator issues an extension.

Value of Stolen Crypto Assets Decline in 2023

Catalyx is only the latest crypto-related platform to suffer a security breach. As previously reported by CryptoPotato, Taiwanese cryptocurrency research and marketing outfit Kronos Research halted trading and withdrawals following a similar incident involving its API keys.

While hacks and thefts continue to plague the crypto space, a recent report by TRM Labs revealed a drastic decline in hack volumes in 2023, with the value of stolen assets at $1.7 billion, compared to almost $4 billion in 2022.

According to the research, part of the reason for the decline is the implementation of robust security measures by cryptocurrency companies.