The crypto market’s holiday effect continues as developments within crypto companies remain in the spotlight. Canada-based crypto exchange Catalyx has suspended user withdrawals and all trading activities on its platform following the detection of a suspected security breach, which they believe may involve an employee.
In a statement released on December 28th, Catalyx officials did not disclose the extent of crypto assets lost due to the breach. The management suspects that the security incident, potentially involving an employee, has resulted in the loss of a portion of the crypto assets held on behalf of customers.
Following the loss, all crypto and fiat withdrawal transactions and trading activities on the platform have been temporarily halted. On December 21st, the Alberta Securities Commission ordered the cessation of all exchange activities on the platform and announced an investigation into the security breach.
Catalyx has stated that it is investigating the losses and has engaged consulting firm Deloitte to assist in getting to the root of the incident. As of the time of writing, Catalyx’s official website displays a banner informing users that the platform is experiencing technical difficulties and will notify them once normal functions are restored.
The Calgary-based exchange, founded in 2018 by current CEO Jae Ho Lee, is registered with Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC). During the bull market in May 2021, the exchange reported a monthly trading volume of $28 million, marking a 73% increase from the previous month.
Currently, there is no public data available on the exchange’s reserves or trading volume on any crypto data aggregator.