The Alberta Securities Commission has issued a Notice of Hearing against CatalX CTS Ltd. (operating as Catalyx), its chief executive officer Hyuek Jae Park and its former chief financial officer Jae Ho Lee, alleging breaches of Alberta securities laws. The allegations include that Lee perpetrated a fraud on clients and that Catalyx failed to comply with a written pre-registration undertaking that allowed it to continue operating in Canada while its application to register as an authorized crypto asset trading platform was under review. According to the Notice of Hearing, 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 platforms, later returning some assets but leaving a substantial shortfall. The Notice also alleges Lee misappropriated clients’ fiat currency deposits for unauthorized purposes, that Park was aware of the fraud by November 24, 2023 but Catalyx did not inform 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 date for a hearing is scheduled for September 15, 2025 at the ASC Hearing Room in Calgary.

Original source View in tracker