Jai Sahu
Canadian cryptocurrency exchange CatalX has temporarily halted its operations following a suspected insider job that resulted in a security breach. On December 28, CatalX CTS Ltd., the operator of the Canadian crypto exchange, issued a press release stating that it had experienced a “security breach,” leading to the loss of cryptocurrency assets held on behalf of its clients.
The breach is believed to involve an employee, prompting the company to comply with a cease trade order issued by the Alberta Securities Commission. In response to the incident, CatalX has suspended all crypto and fiat currency withdrawals from its platform, along with the suspension of all trading activities.
CatalX has initiated an investigation into the extent of the loss and has retained Deloitte LLP to provide certain forensic and investigative services. Currently, the scale of the incident and the total losses incurred remain undetermined. Updates on the situation will be provided after Deloitte LLP concludes its investigation.
Founded in 2017 and headquartered in Vancouver, this cryptocurrency exchange had secured $2 million in funding before its acquisition by LiteLink Technologies in 2020, as reported by CB Insights.