[NEW]: Calgary crypto platform CatalX enters receivership following security breach

[ryanhilliker]

Date

2024-01-24

Description

According to a successful application to appoint a receiver filed in court last week, the company discovered customer funds had been drained, employees had not been paid and its CFO, Jae Ho Lee, had stopped responding to contact attempts in mid-December. The Alberta Securities Commission issued a cease-trade order against the platform and the court put CatalX into receivership last week, the company announced. (The Logic)
Talking point: Canadian crypto investors continue to face risks, despite a crackdown from securities regulators that has succeeded in bringing the sector’s major players into compliance. CatalX was operating without registration and had withdrawn its application for a licence in early December, according to court documents. Hacks, frauds and collapses are common in the crypto-trading sector—two infamous examples are FTX and Canada’s Quadriga. CatalX has not disclosed the value of the customer funds that have gone missing.

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https://apple.news/AndQbeFtEQ5Oswb7bMG9CtQ

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