Canadian cryptocurrency exchange Catalyx has temporarily suspended trading and withdrawals on its platform due to a security breach that it suspects may have involved one of its employees. The exchange believes that this breach has resulted in the loss of a portion of the crypto assets held on behalf of its clients, although the exact amount of the losses has not been disclosed.
Investigating the Breach
In response to the breach, Catalyx has halted all crypto and fiat currency withdrawals, as well as trading activities on its platform. The Alberta Securities Commission has also issued an order, instructing the exchange to cease all trading and launching an investigation into the security incident. To assist with the investigation and determine the extent of the losses, Catalyx has engaged consulting firm Deloitte.
“Management suspects that this security breach, which may involve an employee, has resulted in the loss of a portion of the crypto assets held by the Company on behalf of its clients,” said the platform in a recent statement.
Meanwhile, visitors to the official Catalyx website are greeted with a warning banner indicating “technical difficulties” and a promise to notify users when regular functions are restored. The exchange’s CEO Jae Ho Lee established the Calgary-based exchange in 2018, and it is registered with Canada’s national financial intelligence agency, FINTRAC.
Challenges Faced by Other Exchanges
MEXC, another cryptocurrency exchange, has also recently faced challenges, including rumors surrounding its CEO departure and frozen withdrawals. The exchange clarified the deletion of a Twitter account named “MEXC_CEO,” stating that the owner of the account no longer had any connection with the exchange. It also reassured its user base that the exchange was operating smoothly, with all systems functioning normally.
Furthermore, the Indonesian government has announced that all cryptocurrency exchanges operating within the country must register with the newly established Commodity Future Exchange (CFX). The CFX is the world’s first national bourse dedicated to digital assets and aims to provide a safer environment for crypto investors while tracking digital asset transactions for taxation purposes.
These regulations were introduced in 2019 by the Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), requiring all crypto exchanges operating in the country to seek authorization.
