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CataX CTS Ltd., the Calgary-based company behind cryptocurrency trading platform Catalyx has moved to <a href="https://www.newswire.ca/news-releases/catalx-cts-ltd-announces-security-breach-loss-of-crypto-assets-and-ongoing-investigation-805146446.html" rel="noopener noreferrer nofollow">suspend</a> all trading activities including withdrawal and deposits on the exchange following a security exploit.&nbsp; 
The company has reasons to believe that the breach was conducted by an insider who exploited his access to confidential information.
<h2 id="b-catalyx-undergoes-investigations-after-breach-b-span-style-font-weight-400-span">Catalyx Undergoes Investigations After Breach&nbsp;</h2>
The security breach led to the loss of customers’ crypto assets. Investigations are still ongoing and the extent of the damages is yet to be disclosed publicly. On Thursday, the company released a statement to inform its users of the decision to halt operations.
“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,”&nbsp;Catalyx stated. “Due to the loss, all crypto and fiat currency withdrawals from the platform and all trading activities on the platform have been temporarily suspended.”
<h2 id="b-catalyx-receives-cease-trade-order-from-canadian-authorities-b">Catalyx Receives Cease Trade Order From Canadian Authorities&nbsp;</h2>
Notably, the suspension comes after the company consented to a cease trade order that was issued by the Alberta Securities Commission against the Catalyx and its co-co-founder Jae Ho Lee in connection with this matter. The company has announced that it has engaged the service of Deloitte consulting firm to provide forensic and investigative services.
On the official Catalyx website, there is a warning banner notifying users of the technical challenge that the company is currently faced with. Catalyx has promised to inform users once the investigations have been concluded and its services are restored.&nbsp;
<h2 id="b-crypto-hack-reduced-drastically-in-2023-b">Crypto Hack Reduced Drastically in 2023</h2>
Noteworthy, this is one of the few cyber attacks that the crypto industry saw in 2023. Some sources recently reported up to a 68% drop in the level of crypto hacking in 2023 compared to the levels seen in 2022. In 2022, <a href="https://thecoinrise.com/crypto-hacks-already-drained-3b-this-year-chainalysis/" rel="noopener noreferrer nofollow">over $4 billion was reportedly siphoned by bad actors</a>, with October as the month with most attacks.
As at July 2023, only around <a href="https://thecoinrise.com/crypto-market-records-656m-in-hacks-and-scams-in-h1-2023/" rel="noopener noreferrer nofollow">$656 million was attributed to losses from hacks and scams</a>. With the year ending already, the current figure is around $1.7 billion. The <a href="https://thecoinrise.com/kyberswap-suffers-47m-exploit-on-its-elastic-pools-liquidity-solution/" rel="noopener noreferrer nofollow">attack of KyberSwap’s Elastic Pools liquidity solution</a> which led to the loss of almost $50 million is one of the most recent breaches in the industry.
The post <a href="https://thecoinrise.com/catalyx-suspends-trading-activities-following-security-breach/" rel="noopener noreferrer nofollow">Catalyx Suspends Trading Activities Following Security Breach</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Catalyx Suspends Trading Activities Following Security Breach

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