After what appeared to be an insider attack that resulted in a “security breach,” the Canadian cryptocurrency exchange CatalX suspended operations.
The operator of a Canadian cryptocurrency exchange, CatalX CTS Ltd., announced in a press release on December 28 that it had experienced a “security breach” that led to the loss of cryptocurrency assets held for its clients.
The company granted the Alberta Securities Commission’s cease-trade order in response to the breach, which was allegedly committed by an employee, according to the exchange.
“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.”
In reaction to the event, CatalX suspended all trading activity and momentarily stopped allowing users to withdraw fiat and cryptocurrency funds from its platform.
According to the corporation, Deloitte LLP has been hired to offer “certain forensic and investigative services to the company in connection with its investigation” as part of its ongoing investigation into the loss.
The exchange also stated that updates will be provided following Deloitte LLP’s investigation’s conclusion, as the incident’s scope and losses are still unknown.
According to CB Insights, the cryptocurrency exchange, with its headquarters in Vancouver, was founded in 2017 and raised $2 million in funding before being acquired by LiteLink Technologies in 2020.