Canadian crypto exchange CatalX suspends services following security incident

Canadian cryptocurrency exchange CatalX halted operations following a suspected insider job that resulted in a “security breach.”

CatalX CTS Ltd., the Canadian crypto exchange operator, said in a press release on Dec. 28 that it had suffered a “security breach” resulting in the loss of crypto assets held on behalf of its clients.

The breach, suspected to involve an employee, prompted the company to consent to a cease trade order issued by the Alberta Securities Commission, the exchange said.

“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.”

CatalX

As a response to the incident, CatalX has temporarily halted all crypto and fiat currency withdrawals from its platform, along with a suspension of all trading activities.

The company said it is conducting an investigation into the loss and has retained Deloitte LLP to provide “certain forensic and investigative services to the company in connection with its investigation.” The incident’s scale and losses remain undetermined, with updates to follow after Deloitte LLP concludes its investigation, the exchange added.

Founded in 2017, the Vancouver-headquartered cryptocurrency exchange secured $2 million in funding before its acquisition by LiteLink Technologies in 2020, as reported by CB Insights.