Alberta alleges breach of securities laws by crypto asset trading platform CatalX CTS

The Alberta Securities Commission (ASC) has announced a formal Notice of Hearing concerning CatalX CTS Ltd., known as Catalyx, along with two individuals associated with the company, Hyuek Jae Park and Jae Ho Lee. The allegations involve potential misconduct that occurred while Lee served as the chief financial officer and Park held the position of chief executive officer.

The ASC claims that Jae Ho Lee committed fraud against clients of Catalyx. Furthermore, the regulatory body alleges that Catalyx violated a written undertaking it had previously agreed to with the ASC. This agreement allowed the company to continue its operations in Canada as it awaited approval to be registered as a crypto asset trading platform (CTP).

In Canada, CTPs are mandated to enter into a pre-registration undertaking in order to operate while their registration applications are pending. This regulatory measure aims to ensure compliance with specific terms and conditions designed to protect investors. Details regarding the regulation of crypto asset trading platforms can be found on the Canadian Securities Administrators website.

It is important to note that these allegations have yet to be proven in a hearing. The ASC has scheduled an appearance to establish a hearing date for September 15, 2025. This session will take place in the ASC Hearing Room, located at 250 – 5 Street S.W. in Calgary, Alberta.

In a statement, the ASC acknowledged the collaborative efforts of the British Columbia Securities Commission, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and the Financial Market Authority Liechtenstein in this investigation.

The Alberta Securities Commission is tasked with enforcing securities laws within the province and is committed to maintaining integrity in Alberta’s capital market while safeguarding investors. As part of the Canadian Securities Administrators, the ASC actively promotes improved coordination and uniformity in the country’s capital market regulations.

For further details, individuals may refer to the ASC's official website, where the Notice of Hearing is accessible. For public inquiries, the ASC provides a toll-free contact number and email address for assistance.