Catalyx Exchange Halts Operations Post Security Breach, Probing Potential Insider Involvement

Source: Jason Hafso / Pexels

Canadian cryptocurrency exchange Catalyx has temporarily suspended trading and withdrawals on its platform after discovering a security breach that it suspects may involve one of its employees.

The exchange said it 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.

“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,” the platform said in a recent statement. 

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 issued an order on December 21, instructing the exchange to cease all trading and launching an investigation into the security incident. 

Catalyx has tapped consulting firm Deloitte to assist with the investigation and determine the extent of the losses.

As of now, visitors to the official Catalyx website are greeted with a warning banner indicating “technical difficulties” and promising to notify users when regular functions are restored. 

The Calgary-based exchange was established in 2018 by CEO Jae Ho Lee and is registered with Canada’s national financial intelligence agency, FINTRAC.

Earlier in May 2021, during a broader bull market, Catalyx reported a monthly trading volume of $28 million, marking a significant 73% increase compared to the previous month. 

However, current public data on the exchange’s reserves or trading volume is not available on crypto data aggregators.

MEXC Grapples With Frozen Asset Rumors

Aside from Catalyx, MEXC has also been recently grappling with rumours surrounding its CEO departure and frozen withdrawals. 

The exchange has recently clarified the deletion of a Twitter account named “MEXC_CEO,” explaining that the owner of the account no longer had any connection with the exchange. 

It also addressed frozen accounts claims, reassuring its user base that the exchange was operating smoothly, with all systems functioning normally. 

As reported, the Indonesian government has announced that all cryptocurrency exchanges operating within the country will be required to register with the newly established Commodity Future Exchange (CFX).

Launched earlier this year, the CFX is the world’s first national bourse dedicated to digital assets. 

It aims to provide a safer environment for crypto investors while also serving as a platform to track digital asset transactions for taxation purposes. 

The move comes as a response to the surging demand for cryptocurrencies in Indonesia, where the number of registered crypto traders exceeds that of stock traders, according to official data from 2023.

Under regulations introduced in 2019 by the Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), all crypto exchanges operating in the country are required to seek authorization. 

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