Mike Novogratz, the CEO of Galaxy Digital, believes that the Bitcoin (BTC) and XRP market crashes that brought on bankruptcies have brushed away bad actors, as well as terrible risk management practices in the crypto industry. Despite experiencing a $1 billion net loss in 2022, Novogratz has maintained that Galaxy Digital looks forward to the potential of the industry by way of capital coming into the space. But the funding has been slow and opportunities to apply the capital have been sparse, with institutional investments considered risky and remain largely untested.

Novogratz also noted that though Signature and Silvergate have been important customers, Galaxy Digital has build and strengthened its banking relationships with the Bank of New York and other institutions, allowing them to take advantage of the disconnect between the two parties involved. This has in turn led to one of their single largest volume days in customer franchise, due to the provision of liquidity where it was not previously available.

The current regulatory climate in the United States has made a point of challenge to the crypto industry and it has been similar to an "assault" on the sector to drive people and businesses abroad, according to Novogratz. The SEC is currently investigating Coinbase and the CFTC has accused the major crypto exchange Binance of violating US laws. Coinbase CEO Brian Armstrong has made public his stance on the matter and expressed his willingness to take it to court if needed.

Galaxy Digital remains determined through the current struggles and challenges that the crypto industry faces and remains dedicated to upholding the thesis of cryptocurrency as a viable investment. With the appropriate levels of risk management and secure banking networks, Galaxy Digital works to ensure both its own success, as well as supporting the success of the entire industry.



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