Catalyx, a Canadian cryptocurrency trading platform, has faced a security breach, leading to the loss of customer funds and the temporary suspension of all crypto and fiat withdrawals. The breach, which likely involved an internal employee, has prompted an ongoing investigation to determine the extent of the losses.
Breach and Investigation at Catalyx
Following the breach, Catalyx’s operator, CatalX CTS, released a statement confirming the incident and its impact on the platform’s operations. The company has engaged Deloitte, a major audit and consulting firm, to conduct forensic and investigative services to uncover the details of the theft.
As a result of the breach, trading activities and withdrawals on Catalyx have been halted. While the exact value of the stolen assets remains undisclosed, CatalyX has committed to providing further updates upon the conclusion of Deloitte’s investigation.
Regulatory Action Against Catalyx
The incident closely follows a cease trade order issued by the Alberta Securities Commission against Catalyx and its CEO, Jae Park, on December 21. This order effectively halts the trading and purchasing of securities or derivatives on the platform for 15 days, expiring on January 5, 2024, unless extended by the regulator.
Trend of Crypto Security Breaches
Catalyx joins a growing list of crypto-related platforms that have experienced security breaches. Notable recent incidents include the security breach at Taiwanese cryptocurrency research and marketing firm Kronos Research, which also led to the suspension of trading and withdrawals.
Decline in Stolen Crypto Assets in 2023
Despite ongoing security challenges, a report by TRM Labs indicates a significant decline in the volume and value of stolen crypto assets in 2023. The total value of assets stolen this year amounts to $1.7 billion, a sharp decrease from nearly $4 billion in 2022. The report suggests that the implementation of more robust security measures by cryptocurrency companies has contributed to this decline.
Catalyx’s security breach underscores the persistent risk of cyber threats in the cryptocurrency space, emphasizing the need for continued vigilance and strengthened security protocols across the industry.