On Thursday, Canadian cryptocurrency exchange Catalyx announced a security breach resulting in the loss of crypto assets. CatalX CTS Ltd., the operator of the exchange, stated that the incident is suspected to be linked to an employee. As a result, all trading and withdrawal activities on the platform have been suspended.

The Alberta Securities Commission granted an interim cease order on December 21, 2023. The order, which is in effect for 15 days unless extended by the Commission, mandates a pause on trading and purchasing of securities or derivatives. Currently, the exchange is undergoing an audit by Deloitte.

This is not the first time a crypto business has suffered a loss due to an insider breach. In July 2023, CoinsPaid reportedly lost $37 million due to hackers gaining access to an employee’s computer. LastPass, a firm specializing in password data encryption, also experienced a security breach due to a compromised employee credential.

A De.Fi report revealed that the decentralized finance sector lost approximately $1.95 billion in 2023. Ethereum was the most targeted blockchain, suffering a total of $1.35 billion across 170 breaches.