The Alberta Securities Commission alleges CatalX CFO Jae Ho Lee improperly withdrew at least $14 million worth of clients’ crypto assets from the company’s trading platform beginning in 2019 and transferred them to other trading sites, leaving the platform with a substantial shortfall after he failed to return it all. CatalX CEO Hyuk Jae Park, who was also charged, knew about the fraud in November 2023 but failed to inform the ASC until the following month, the regulator alleges. (The Logic)
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The Alberta Securities Commission alleges CatalX CFO Jae Ho Lee improperly withdrew at least $14 million worth of clients’ crypto assets from the company’s trading platform beginning in 2019 and transferred them to other trading sites, leaving the platform with a substantial shortfall after he failed to return it all. CatalX CEO Hyuk Jae Park, who was also charged, knew about the fraud in November 2023 but failed to inform the ASC until the following month, the regulator alleges. (The Logic)
Talking point: Crypto is becoming more and more mainstream as the U.S. passes friendly legislation, but fraud and cybercrime remain a significant problem. Criminals have stolen more than US$2.17 billion from crypto services so far in 2025, more than the entirety of 2024, according to a report by blockchain data research firm Chainalysis Thursday. CatalX entered receivership in January 2024 after the company discovered customer funds had been drained, employees had not been paid and Lee had stopped responding to contact attempts.
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