Canadian Crypto Trading Platform Catalyx Suffers Security Breach, Halts Withdrawals

According to CryptoPotato, Canadian crypto trading platform Catalyx experienced a security breach resulting in the loss of customer funds. The exact value of the loss has not been disclosed, and the platform has temporarily suspended crypto and fiat withdrawals during ongoing investigations. CatalX CTS, the operator of Catalyx, announced the incident in a press release, suggesting that an employee was likely involved in the breach. The company has enlisted the services of audit and consulting firm Deloitte to assist with forensic and investigative services. As a result of the breach, users are currently unable to trade or withdraw assets from the Catalyx platform. The announcement does not specify the extent of the loss, only stating that it involves 'a portion of crypto assets held by the company on behalf of clients.' More updates are expected following the conclusion of Deloitte's investigation. This incident comes shortly after the Alberta Securities Commission issued a cease trade order against CatalX and its CEO, Jae Park, on December 21. The order requires the company to halt trading and purchasing of securities or derivatives for 15 days, expiring on January 5, 2024, unless an extension is granted. Catalyx is the latest crypto-related platform to experience a security breach. Taiwanese cryptocurrency research and marketing firm Kronos Research also recently halted trading and withdrawals following a similar incident involving its API keys. Despite ongoing hacks and thefts in the crypto space, a report by TRM Labs revealed a significant decline in hack volumes in 2023, with the value of stolen assets at $1.7 billion, compared to nearly $4 billion in 2022. The research suggests that the implementation of robust security measures by cryptocurrency companies has contributed to this decline.