Galaxy Digital's Testnet Gets Gently Rekt—But Your Crypto Is Safe (We Promise)

Mike Novogratz's Galaxy Digital recently contained a cybersecurity incident, and no, your funds didn't become someone's early birthday present. Because that would be awkward.

The unauthorized access was limited to an isolated R&D workspace—basically a segregated testing environment nowhere near the production systems where actual client money lives. Galaxy confirmed that no client funds or account information were accessed or at risk at any point. Think of it like someone breaking into your grandma's basement gym while the real jewelry stays in a vault upstairs. Different planet.

An immaterial amount of company funds used for testing within the isolated development workspace was impacted. The loss was less than $10,000, according to a person with knowledge of the matter. For context, that's roughly equivalent to a nice dinner for two at a very expensive restaurant—or roughly 0.0001% of what some DeFi protocols lose in a bad afternoon. Pocket change in crypto land. You probably spend more on gas fees in a busy week.

The firm emphasized that the affected environment was used solely for research and development and was not connected to its core infrastructure, trading platforms or client accounts. Galaxy said it detected the intrusion, moved quickly to contain it, secured the compromised workspace and implemented additional precautionary measures across its on-chain