News Report Technology
December 29, 2023

Catalyx Crypto Exchange Suspends Operations After Security Breach

In Brief

Catalyx identified a security vulnerability on its platform related to customers’ assets and suspended trading and withdrawal operations.

Catalyx Crypto Exchange Suspends Operations After Security Breach

Company operating the cryptocurrency trading platform Catalyx — CatalX identified a security vulnerability on the platform related to holding of cryptocurrency assets on behalf of customers. Currently, the company has suspended cryptocurrency and fiat withdrawals along with all trading activities, initiating an investigation process.

The company’s management suspects that the security breach, lead to a loss of Catalyx customers’ cryptocurrency assets, may have involved employees. However, CatalX has refrained from disclosing the exact amount of losses.

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

Global financial auditing firm Deloitte LLP was invited to provide forensic and investigative services to the company in examining the incident. The company plans to update its users after Deloitte completes the investigation, according to the official statement.

Security Threats Keep Rising Before Year End

Over the year, cryptocurrency landscape has witnessed a significant rise in vulnerabilities, security breaches and hacker attacks across various cryptocurrency exchanges.

Earlier this year, Justin Sun’s Poloniex exchange faced a significant security breach resulting in the theft of approximately $100 million worth of cryptocurrencies, ranking among the most impactful hacker attacks of 2023.

Likewise, Binance encountered a security breach where a bad actor offered access to Binance’s law enforcement request panel, granting unauthorized access to account data for a fee. The compromise of three computers owned by law enforcement officers resulted in the theft of credentials stored in browsers, enabling unauthorized entry into Binance’s login panel.

Despite a reported decline of over half in cryptocurrency hack volumes, as indicated by the TRM Labs report for 2023 compared to the previous year, stakeholders in the cryptocurrency space are advised to remain vigilant as cryptocurrency and Web3 projects, given their monetary value, may still be susceptible to inadequate security measures.

In an era of increasing vulnerabilities and security breaches in the cryptocurrency landscape, Catalyx’s recent security lapse emphasizes the heightened need to safeguard digital assets against both internal and external threats.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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