Alberta Securities Commission Permanently Bars Catalyx Exchange

The Alberta Securities Commission (ASC) has permanently banned the Calgary-based cryptocurrency exchange Catalyx from operating and participating in capital markets, as BetaKit first reported. According to BetaKit, the ASC's move follows the discovery that Catalyx mismanaged millions of dollars in client assets.

Catalyx operated from 2019 until 2024, but was shut down in December 2023 via a cease-trade order after a security breach. BetaKit reports that company records found by a court-appointed receiver listed $14 million USD ($20 million CAD) in client assets, though only $150,000 USD in material assets were actually present in company accounts. The ASC attributed this shortfall to unauthorized withdrawals and the use of assets for purposes unrelated to client activities.

As part of a settlement, the ASC fined Catalyx CEO Hyuk Jae Park $90,000 and required his resignation from all director and officer positions. Park is barred from such roles for six years, or until he completes corporate officer training. The ASC noted that penalties would have been harsher, but Park contributed $950,000 to the company's receivership. Park also failed to notify the ASC of the asset breach until December 21, 2023, despite discovering it in November.

While the settlement with Park is complete, BetaKit reports the ASC is still pursuing fraud allegations against former CFO Jae Ho Lee. Catalyx formally entered receivership in January 2026. Because the ASC does not pursue the recovery of misappropriated funds, former users—some of whom have waited years for compensation—must file bankruptcy claims or seek outside counsel.