Galaxy Digital (GLXY), the digital asset financial services company founded by Mike Novogratz, recently experienced a cybersecurity incident involving unauthorized access to an isolated development workspace, a spokesperson said in a statement.
“A small portion of company funds used for testing in isolated development workspaces were impacted,” the spokesperson said in emailed comments. The loss was less than $10,000, according to a person familiar with the matter.
The company emphasized that the affected environment was used for research and development only and had nothing to do with its core infrastructure, production systems, trading platforms or customer accounts.
Galaxy said it detected the intrusion and acted quickly to contain it, secure infected workspaces and implement additional precautions across its on-chain infrastructure.
“Based on our review to date, at no time were customer funds or customer account information accessed or put at risk,” Galaxy said, adding that all platforms and services remain fully operational and secure for customers.
Hacking and exploits remain an ongoing risk in the crypto industry, and the combination of open source code, massive on-chain liquidity, and uneven security practices creates an attractive target for attackers.
Smart contract vulnerabilities, phishing schemes, and infrastructure vulnerabilities have caused billions of dollars in losses, with industry estimates often exceeding $1-2 billion annually in recent years.
Even if the incident is contained and customer assets are not affected, the breach could erode trust, trigger greater regulatory scrutiny and highlight the operational risks faced by companies operating in a largely irreversible, always-on financial system.
Galaxy is a diversified financial services and investment company focusing on digital assets and blockchain, providing trading, asset management, lending, consulting and custody services to institutional clients.
The company operates across multiple core business lines, including global markets, asset management and digital infrastructure, while also operating in areas such as cryptocurrency mining, staking and data center operations.
Galaxy is positioned as a bridge between traditional finance and cryptocurrencies, providing access to institutional-grade digital assets and related technologies, as well as investments in emerging areas such as blockchain enterprises and artificial intelligence infrastructure.
The company said it is continuing to review the incident and will provide updates as appropriate.
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