The crypto exchange Catlyx closed all crypto services as the exchange lost a huge amount of crypto assets.
Catalyx is a Calgary-based crypto exchange. This crypto platform was founded in 2018 by current CEO Jae Ho Lee. The exchange is also registered with Canada’s national financial intelligence agency FINTRAC.
Almost a week ago, the executives of this platform noticed that the exchange was losing a huge amount of crypto assets. Following this bad development, the Alberta Securities Commission ordered the exchange to shut down all crypto trading services and launched an investigation into the exchange to find the security breach and find out the main reason behind this incident.
On December 28, 2023, the Catlyx platform was officially launched revealed this issue and shared a summary of this incident.
Information shared by the exchange confirmed that the exchange lost some of the crypto assets that the platform held on behalf of its customers. In short, the exchange lost customers’ money.
The exchange confirmed that an investigation is underway and also suspects the involvement of one of its employees, but did not reveal the actual amount of the exchange’s fund loss.
Catlyx confirmed that its services will remain unavailable until the investigation into this incident is completed.
On the official website, Catlyx mentioned that the exchange is experiencing technical issues and also stated that the exchange will inform all customers when services will be restored.
Currently, there are no new or old data reports available to find out the average reserves and trading volume of this exchange.
In May 2021, this crypto platform almost boasted $28 million in monthly trading volume, which at the time represented a 73% increase month-on-month.
Such types of incidents with the crypto platforms are a very big barrier to this crypto bull phase. Between 2021 and the first quarter of 2023, many crypto projects and platforms have seriously collapsed and currently only those projects are smoothly providing crypto services that provide crypto services for the benefit of better foundations and management.
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