Catalyx, a prominent Canadian cryptocurrency exchange, has temporarily suspended all trading activities, deposits, and withdrawals following a security breach. The company suspects the involvement of one of its employees and has initiated an investigation. The exact extent of the funds lost has not been disclosed, but the exchange has taken precautionary measures by halting all crypto and fiat currency withdrawals.

The security breach prompted Canadian regulators, including the Alberta Securities Commission, to issue a cease-and-desist order against Catalyx. This order restricts all trading of crypto contracts and includes a 15-day freeze, which is set to expire on January 5. CEO Jae Ho Lee has cooperated with regulators and consented to the freeze order.

In response to the incident, Catalyx has enlisted the services of consulting firm Deloitte to aid in the investigation and assess the extent of the losses. While the precise amount of compromised crypto assets has not been disclosed, the exchange has acknowledged that some assets held on behalf of clients may have been affected.

The aftermath of the security breach is evident in the suspension of all trading activities and withdrawals. The official Catalyx website now displays a warning banner, notifying users of technical difficulties and promising updates on the restoration of regular functions.

This security breach is not an isolated incident, as several other crypto firms have also faced similar breaches in recent months. The crypto industry has suffered significant losses due to hacks and scams, with reports indicating a total of $1.5 billion in losses until September 2023.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	North America
Countries	🇨🇦
Sentiment	neutral
Relevance Score	1
People	Jae Ho Lee
Companies	OKX, Alberta Securities Commission, Catalyx, Binance, Deloitte
Currencies	None
Securities	None