Galaxy Digital (GLXY), the digital asset financial firm founded by Mike Novogratz, said it recently contained a cybersecurity incident involving unauthorized access to an isolated development workspace, according to a statement from a company spokesperson.
“An insignificant amount of company funds used for testing within the isolated development workspace was affected,” the spokesman said in emailed comments. The loss was less than $10,000, according to a person familiar with the matter.
The firm emphasized that the affected environment was used solely for research and development and was not connected to its core infrastructure, production systems, trading platforms or customer accounts.
Galaxy said it detected the intrusion and moved quickly to contain it, secure the compromised workspace and implement additional security measures across its on-chain infrastructure.
“No client funds or client account information was accessed or compromised at any time based on our review to date,” Galaxy said, adding that all platforms and services remain fully operational and secure for customers.
Hacks and exploits remain an ongoing risk in the crypto industry, where the combination of open source code, large pools of onchain liquidity, and patchy security practices create an attractive target for attackers.
Billions of dollars are lost to smart contract exploits, phishing schemes and infrastructure breaches, with industry estimates often exceeding $1-2 billion annually in recent years.
Even when incidents are contained and customer assets are not affected, breaches can erode trust, trigger increased regulatory scrutiny and underscore the operational risks faced by companies operating in largely irreversible, always-on financial systems.
Galaxy is a diversified financial services and investment company focused on the digital asset and blockchain sectors, offering institutional clients trading, wealth management, lending, advisory and custody services.
The firm operates across several core business lines, including global markets, asset management and digital infrastructure, while also operating businesses in areas such as cryptomining, staking and data center operations.
Positioned as a bridge between traditional finance and crypto, Galaxy offers institutional access to digital assets and related technologies alongside investments in blockchain ventures and emerging areas such as AI-powered infrastructure.
The company said it continues to review the incident and will provide updates as needed.
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