Galaxy Digital (GLXY), the digital asset financial services company 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 in the isolated development workspace was impacted,” the spokesperson said in emailed comments. The loss was less than $10,000, according to a person with knowledge of the matter.
The company stressed that the affected environment was used for research and development purposes only and was not connected to its core infrastructure, production systems, trading platforms or client accounts.
Galaxy said it detected the intrusion and acted quickly to contain it, secure the compromised workspace, and implement additional precautionary measures across its on-chain infrastructure.
“No funds or customer account information has been accessed or put at risk 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 a persistent risk in the crypto industry, where the combination of open source code, vast on-chain liquidity reserves, and spotty security practices creates 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 per year in recent years.
Even when incidents are contained and customer assets are not affected, breaches can erode trust, trigger increased regulatory scrutiny, and highlight 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 assets and blockchain sector, providing institutional clients with trading, asset management, lending, advisory and custody services.
The company operates across several core business segments, including global markets, asset management and digital infrastructure, while also managing businesses in areas such as cryptocurrency mining, staking and data center operations.
Positioned as a bridge between traditional finance and crypto, Galaxy offers institutional-grade access to digital assets and related technologies, as well as investments in blockchain businesses and emerging areas such as AI-based infrastructure.
The company said it continues to review the incident and will provide updates as appropriate.
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