Canadian Cryptocurrency Exchange Pauses Withdrawals, Trading After Security Breach

Catalyx, a Canadian cryptocurrency exchange, has recently faced a setback as it decided to halt withdrawals and suspend all trading activities due to a detected security breach. The exchange suspects that one of its employees might be involved in the breach, leading to the potential loss of some crypto assets held on behalf of its clients. Although the specific amount of the lost assets remains undisclosed, the incident prompted the temporary suspension of both cryptocurrency and fiat currency withdrawals and all trading activities on the platform.

This development caught the attention of the Alberta Securities Commission, which, on December 21, instructed Catalyx to cease all trading activities and initiated an investigation into the security breach. In response, Catalyx is actively investigating the losses and has enlisted the assistance of Deloitte, a consulting firm, to delve into the details of the incident. Currently, the official Catalyx website displays a warning banner about technical difficulties, assuring users that regular functions will be restored and signalling ongoing efforts to address the situation. Established in 2018, Catalyx, based in Calgary, has faced challenges during this security breach, raising questions about the safety and integrity of cryptocurrency exchanges.

Also Read: Crypto Prices See Marginal Decline With Fall In Trading Volume

ARK Invest kicks off Bitcoin ETF 'amendment-athon' ahead of deadline

ARK invest has taken the lead in the race for approval of a spot Bitcoin ETF by submitting its final S-1 amendment before the SEC's December 29 deadline. This strategic move is essential for being considered in the initial round of approvals expected in January. The SEC, during meetings on December 21, set a deadline for firms, emphasizing that those missing it won't be part of the first wave of potential approvals. ARK Invest's recent amendment, focusing on authorized participants, aligns with the evolving landscape, following a previous revision on December 19 related to cash creations and redemptions for shares in their Ark 21Shares Bitcoin ETF (ARKB). Bloomberg ETF analysts anticipate other firms may follow suit, potentially submitting amendments close to the deadline to maintain a competitive edge.

With over a dozen companies vying for approval of a spot Bitcoin ETF, additional S-1 amendments are expected in the coming days. The heightened activity leading up to the anticipated launch of spot Bitcoin ETFs in January reflects a broader trend. As noted by ETF Store President Nate Geraci, this ongoing saga is compelling traditional finance investors to delve into crypto and vice versa, acting as a bridge between the two realms. This dynamic interaction signifies a growing integration of cryptocurrency and traditional finance, highlighting the enduring relevance of crypto in the financial landscape.

Avalanche Foundation is about to start buying meme coins for the 'culture'

The Avalanche Foundation has announced its plan to invest in meme coins using its $100 million NFT incubator fund. This move is part of the "Culture Catalyst" initiative, originally launched in March 2022 to support promising NFT projects on the Avalanche Network. The foundation aims to recognize and promote the creativity and culture fostered by meme-derived tokens, stating that meme coins go beyond mere utility assets and represent the collective spirit of diverse crypto communities.

To achieve this, the foundation will use the fund to acquire select Avalanche-based meme coins and build a collection. However, not all meme coins will be included, as stringent criteria, including the number of holders, liquidity, project maturity, fair launch principles, and social sentiment, will be applied during the selection process. The recent market frenzy for meme coins has extended to Avalanche, with a notable example being the rooster-themed token Coqinu (COQ), which experienced a staggering surge of over 1.47 million per cent between December 8 and December 20. Despite the inherent acknowledgement of its worthlessness, Coqinu became a focal point of trading activities on the Avalanche network, emphasizing the growing interest in meme-driven tokens.