Galaxy Digital (GLXY), the digital asset financial services firm founded by Mike Novogratz, said it recently contained a cybersecurity incident involving unauthorized access to a sandboxed development workspace, according to a statement from a company spokesperson.
“An immaterial amount of company funds used for testing within 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 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 acted quickly to contain it, secure the compromised workspace and implement additional precautionary measures across its on-chain infrastructure.
“Based on our review to date, no customer funds or account information was accessed or compromised at any time,” 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, large pools of on-chain liquidity, and uneven security practices create an attractive target for attackers.
Billions of dollars are lost due to smart contract exploits, phishing schemes, and infrastructure breaches, with industry estimates often exceeding $1 to $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 businesses 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 in several main lines of business, including global markets, asset management and digital infrastructure, while also managing businesses in areas such as crypto mining, gambling and data center operations.
Positioned as a bridge between traditional finance and cryptocurrencies, Galaxy offers institutional-grade access to digital assets and related technologies, along with investments in blockchain companies and emerging areas such as AI-powered infrastructure.
The company said it continues to review the incident and will provide updates as appropriate.
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