Posted: Dec 29, 2023 2:50 AM Updated: Dec 29, 2023 2:50 AM
Correction and fact check date: December 29, 2023, 2:50 AM
briefly
Catalyx identified security vulnerabilities in its platform related to customer assets and suspended trading and withdrawal operations.
The company that operates cryptocurrency trading platform Catalyx — CatalX has identified security vulnerabilities in its platform related to holding cryptocurrency assets on behalf of its customers. Currently, the company has suspended cryptocurrency and fiat currency withdrawals along with all trading activities and has initiated an investigation process.
Company executives suspect that employees may have been involved in a security breach that led to the loss of cryptocurrency assets for Catalyx customers. However, CatalX has refrained from disclosing the exact amount of its losses.
The suspension follows a trading halt order issued by the Alberta Securities Commission on December 21 against the company and its co-founder, Jae-Ho Lee.
Deloitte LLP, a global financial audit firm, was invited to provide forensic and investigative services to the company to investigate the incident. According to an official statement, the company plans to provide users with an update once Deloitte completes its investigation.
Security threats continue to increase before the end of the year
Over the past year, the cryptocurrency landscape has seen a significant increase in vulnerabilities, security breaches, and hacker attacks on various cryptocurrency exchanges.
Earlier this year, Justin Sun’s Poloniex exchange faced a serious security breach that resulted in the theft of approximately $100 million worth of cryptocurrency, making it one of the most impactful hacker attacks of 2023.
Similarly, Binance suffered a security breach in which malicious actors offered access to Binance’s law enforcement request panel in exchange for a fee, allowing unauthorized access to account data. Three computers owned by law enforcement were compromised, resulting in the theft of credentials stored in browsers and unauthorized entry into Binance’s login panel.
Despite reporting that the volume of cryptocurrency hacks has decreased by more than half compared to the previous year, according to TRM Labs’ 2023 report, stakeholders in the cryptocurrency space remain vigilant as cryptocurrencies and Web3 projects can still be risky given their monetary value. It is recommended. May be vulnerable to inadequate security measures.
In an era of increasing vulnerabilities and security breaches in the cryptocurrency environment, Catalyx’s recent security failure highlights the heightened need to protect digital assets from internal and external threats.
disclaimer
In accordance with the Trust Project Guidelines, the information provided on these pages is not intended and should not be construed as legal, tax, investment, financial or any other form of advice. It is important to invest only what you can afford to lose and, when in doubt, seek independent financial advice. For more information, please refer to the Terms of Use and any help and support pages provided by the publisher or advertiser. Although MetaversePost is committed to accurate and unbiased reporting, market conditions may change without notice.
About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles
alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles