CatalX
CTX Ltd., the company behind the Canadian crypto exchange Catalyx, has taken
the unprecedented step of suspending all trading, deposits, and withdrawals in
the wake of a security breach. The breach has reportedly resulted in the loss
of some customer funds, prompting swift action from the platform.

Concerns
Rise over Financial Losses

CatalX
CTX Ltd. issued a press release acknowledging the security incident and
revealed that an investigation has been launched to uncover the details
surrounding the breach. While the company did not disclose the extent of the
financial losses, concerns are escalating over the potential impact on users’
assets.

The
nature of the security breach remains under scrutiny, with the company
suggesting the possibility of an internal involvement, possibly by an employee.
This revelation adds another layer of complexity to the ongoing investigation
as authorities and the company work to ascertain the full extent of the
incident.

Compounding
Catalyx’s woes, Canadian regulators recently intervened, directing the exchange
to halt all trading activities related to crypto contracts. Concurrently,
regulatory authorities initiated their investigation into the company’s
operations. In response to the regulatory directive, the CEO of Catalyx, Jae Ho Lee, consented to a 15-day freeze order imposed by the Alberta Securities
Commission. The freeze order is set to expire on January 5, during which time
further investigation is expected to shed light on the circumstances
surrounding the security breach.

⚠️ Sàn Crypto Catalyx ở Canada 🇨🇦 đã tạm dừng việc rút tiền và ngưng mọi hoạt động giao dịch trên nền tảng của mình sau khi phát hiện ra một „sự cố an ninh”, nghi ngờ có thể liên quan đến một trong những nhân viên của mình.Catalyx không tiết lộ số… pic.twitter.com/SYo8ZDtzHv

— ThuanCapital.eth (@ThuanCapital) December 29, 2023

Translated by Google, it reads: Canadian exchange Crypto Catalyx 🇨🇦 has paused withdrawals and suspended all trading activities on its platform after discovering a „security incident”, suspected to possibly involve one of its employees.

Catalyx did not disclose the amount of crypto lost due to this incident.

Bitstamp
Follows Binance and Bybit in Exiting Canadian Market

Earlier,
Finance Magnates reported that Bitstamp
decided to cease its operations in Canada from January 8, 2024, following
the exits of Binance and Bybit earlier in the year. The CEO of Bitstamp, Bobby Zagotta, expressed his gratitude to Canadian customers, attributing the move to new
regulatory dynamics. Customers can withdraw funds until January 8, after which
account deactivation is required.

The
departure is aligned with a broader trend as major exchanges like Binance and Bybit have left
due to regulatory changes and market conditions. The Canadian Securities
Administrators allowed specific stablecoin trading under certain conditions,
signaling evolving regulatory landscapes. Bitstamp’s exit underscores
challenges in the crypto industry amid shifting compliance demands.

This article was written by Tareq Sikder at www.financemagnates.com.