- Insolvency Insider Canada
- CatalX CTS Ltd. and Catalx Management Ltd., Receivership
CatalX CTS Ltd. and Catalx Management Ltd., Receivership
CatalX CTS Ltd., a Calgary, Alberta-based operator of a crypto trading platform, and Catalx Management Ltd., which employed the employees that provided services to CatalX and held the bank accounts that CatalX used for its operations, were placed into receivership on January 19, on application by CatalX itself and Hyuk Jae Park, its CEO.
In November 2023, Mr. Park learned that CatalX had ceased allowing withdrawals of customer deposits and had not paid its employees and contractors for the month of November and the first pay period in December. A review of the company’s records also revealed that the balances of customer funds had been withdrawn or transferred out of the accounts.
After not receiving a response from the company’s CFO about the issue, the company engaged Deloitte to conduct an investigation into the missing crypto and to assist with the orderly wind-down of CatalX.
The company and the CEO then sought to appoint Deloitte as receiver under the Judicature Act, Business Corporations Act and Law and Equity Act. The ASC is also conducting its own investigation into the company.
Deloitte is the receiver.
Counsel is Miller Thomson for the company, Burnet, Duckworth & Palmer for the receiver, Church & Company for Hyuk Jae Park, Stikeman Elliott for Bittrex Global, and Singleton Urquhart Reynolds Vogel for Jae Ho Lee.
By: Dina Milivojevic