Canadian crypto exchange Catalyx ceases all trading following security breach

Quick Take

  • The company suspects the breach may be an inside job.

CataX CTS Ltd., the Calgary-based company operating cryptocurrency trading platform Catalyx, has suspended trading and fund withdrawals at the exchange which was recently affected by a security breach, the company said on Thursday.

The suspension follows a cease trade order issued on Dec. 21 by the Alberta Securities Commission against the company and co-founder Jae Ho Lee.

As the security breach resulted in a loss in some of Catalyx customers’ crypto assets, the company launched an investigation with suspicion that an employee was involved in the incident.


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

CataX did not disclose the exact amount of losses, and did not immediately respond to The Block’s email enquiry for further details.

Global financial auditing firm Deloitte LLP will “provide forensic and investigative services to the company” in examining the incident, CataX said. The firm plans on updating its users after Deloitte finishes the investigation, the company noted in the statement.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Danny Park is an East Asia reporter at The Block writing on topics including Web3 developments and crypto regulations in the region. He was formerly a reporter at Forkast.News, where he actively covered the downfall of Terra-Luna and FTX. Based in Seoul, Danny has previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor of Journalism and Business Marketing from the University of Hong Kong.


To contact the editor of this story:
Timmy Shen at
[email protected]