Crypto's 'terrible risk management' has been 'washed away:' Galaxy Digital CEO

Quick Take

  • Galaxy Digital CEO Mike Novogratz said that “most of the bad actors and most of the terrible risk management practices have been washed away.”
  • The company saw its single largest volume days in customer franchise on the weekend following the shutdowns of Silvergate and Silicon Valley Bank.
  • On what he sees as a “regulatory assault” on crypto: “I appreciate [Coinbase CEO] Brian Armstrong taking the fight public.”

Galaxy Digital CEO Mike Novogratz believes most "bad actors" and "terrible risk management practices" in crypto have been swept away.

For companies that have managed to survive thus far, the risk going forward is a lack of capital flowing into the space, with institutional adoption still shy following the slump in cryptocurrencies and various bankruptcies in the industry, Novogratz said during a Barclays Crypto & Blockchain Summit fireside chat aired on Thursday.

"There are plenty of companies that are capital-starved," which also presents an opportunity in asset management for firms like Galaxy since there's no shortage of places to apply capital, he said.

The company this week disclosed a $1 billion net los