Catalyx CTS, the operator of Canadian-based crypto trading platform Catalyx, recently announced a security breach that resulted in the loss of customer funds in its custody. Although the exact value of the theft is unknown, the company has halted crypto and fiat withdrawals while the incident is being investigated.
To look into the breach, Catalyx has hired audit and consulting giant Deloitte to “provide certain forensic and investigative services.” As such, trading and withdrawing assets from the platform have been temporarily suspended until the conclusion of the investigation. Catalyx has yet to provide further details on the extent of the loss, apart from noting a “portion of crypto assets held by the company on behalf of clients.”
The announcement comes days after CatalX agreed to a cease trade order by the Alberta Securities Commission on Dec. 21. The company and its CEO, Jae Park, have been ordered to stop trading and purchasing any securities or derivatives for 15 days, which will expire on Jan. 5, 2024, unless the regulator issues an extension.
Catalyx is not the only crypto-related platform to suffer a security breach in recent months. Taiwanese cryptocurrency research and marketing outfit Kronos Research has also halted trading and withdrawals following a similar incident involving its API keys.
Fortunately, the value of lost assets in the crypto space has seen a steep decline in 2023. According to TRM Labs, the value of stolen assets has dropped to $1.7 billion in 2023 from almost $4 billion the year prior. This may be due to the implementation of more robust security measures by crypto companies.