The Alberta Securities Commission issued a Notice of Hearing against CatalX CTS Ltd. (operating as Catalyx), its chief executive officer Hyuk Jae Park and its chief financial officer Jae Ho Lee, alleging that Lee defrauded Catalyx clients and that the firm breached a written undertaking that allowed it to continue operating in Canada while its application to register as a crypto asset trading platform was under review. The Notice of Hearing alleges that, beginning in February 2019, Lee improperly withdrew at least CAD 14,030,000 worth of clients’ crypto assets from the Catalyx platform and transferred them to accounts he controlled at other crypto trading platforms, later returning some assets but leaving a substantial shortfall. It also alleges misappropriation of clients’ fiat currency deposits for unauthorized purposes, that Park was aware of the fraud by November 24, 2023 but Catalyx did not notify the ASC of this material breach of the undertaking until December 21, 2023, and that Catalyx failed to establish and apply policies and procedures to manage and mitigate the risk of employee misappropriation of client assets meant to be held in trust. An appearance to set a hearing date is scheduled for September 15, 2025 in the ASC Hearing Room in Calgary, Alberta. The ASC noted the allegations have not been proven in a hearing.

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