The Alberta Securities Commission concluded a settlement with crypto asset trading platform CatalX CTS Ltd., operating as Catalyx, and its chief executive officer, Hyuk Jae Park, for breaching a pre-registration undertaking. Catalyx admitted that it failed to maintain controls against unauthorized withdrawals and did not promptly report a material loss of client assets. Park admitted that he authorized, permitted or acquiesced in the breaches. The court-appointed receiver found that Catalyx’s records showed almost USD 14 million in crypto assets, while the actual value was about USD 150,000. The shortfall primarily resulted from unauthorized withdrawals and the use of crypto assets for purposes unrelated to client activities. Although Park knew of the loss by Nov. 24, 2023, Catalyx did not notify the commission until Dec. 21, 2023. Catalyx is permanently barred from trading or purchasing securities or derivatives and from specified capital markets activities. Park must pay CAD 90,000, resign as a director and officer, and comply with market access restrictions for six years or until he completes corporate officer duties training, whichever is longer. The sanctions reflect his CAD 950,000 in funding and contributions to the receivership process. The commission’s fraud proceeding against former Catalyx chief financial officer Jae Ho Lee remains underway.

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