Crypto Firm CatalX Settles with ASC Over Breach Allegations

CatalX CTS Ltd., a failed crypto trading platform, has settled with the Alberta Securities Commission (ASC) over allegations of breaching a pre-registration undertaking. The firm operated between February 2019 and January 2024, when it was placed into receivership due to the loss of most clients' assets.

The ASC alleged that CatalX failed to maintain adequate controls to safeguard investors' assets and did not promptly inform regulators about the material loss. According to the firm's receiver, while records indicated $14 million in crypto assets, the actual value was just $150,000, due to unauthorized withdrawals and unrelated uses.

In a settlement, CatalX admitted to breaching its undertaking, and former CEO Hyuk Jae Park admitted to allowing these breaches. The company is permanently banned, and Park was prohibited from registration and acting as a director or officer for six years. He also agreed to pay $90,000 to the ASC.