The cryptocurrency broker CatalX today announced the suspension of all its operations, including digital asset withdrawals. The decision comes after a “security breach” that the company said involved one of its employees. According to the company, the alleged hack resulted in significant losses of customer funds.
According to a statement from CatalX published on Friday morning (29), the severity of the incident has led the platform to comply with a commercial suspension order from the Canadian Securities and Exchange Commission.
While the investigation is ongoing, the company has suspended all withdrawals of both cryptocurrencies and fiat currencies and halted all trading activities on its platform.
In an effort to understand the full scope of the hack and recover what was lost, CatalX hired Deloitte, one of the world’s leading consulting firms, to assist with investigative services.
The exact extent of the losses has not yet been determined and the company promised future updates once Deloitte LLP completes its analysis.
“Management believes that this security breach, which may have involved an employee, has resulted in the loss of some of the assets the company holds on behalf of its customers.”
Cryptocurrency broker suspends withdrawals
Founded in 2017 and acquired by LiteLink Technologies in 2020, CatalX had received $2 million in funding prior to this incident, as reported by CB Insights.
Last week, Canada’s CVM ordered Catalyx to completely stop selling cryptocurrency contracts and launched its own investigation into the platform.
The recent incident disrupted the platform’s regular trading and withdrawal operations, stating that as a result of the hack “all cryptocurrency and fiat currency withdrawals and all trading activities on the platform have been temporarily suspended.”
The broker’s website now features a warning banner informing users that there are “technical issues” with its platform and that it will notify customers when regular services are back up and running.
The broker has promised to inform its clients of any significant discoveries or developments as the investigation progresses. The company expects to provide updates following the completion of Deloitte’s investigation.
Users of the platform were advised to stay tuned for future communications regarding the resolution of the security breach and the resumption of normal trading and withdrawal activities.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
