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

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