Novogratz’s Crypto Investment Firm Galaxy Digital Shrinks Workforce 15%

Galaxy Digital, the cryptocurrency merchant bank founded by Wall Street veteran Michael Novogratz, has laid off 13 people, roughly 15 percent of its workforce, people familiar with the situation said.

The layoffs occurred across the board in early January, and all of the New York-based firm’s business divisions – asset management, trading, principal investments, and advisory services – were left intact. In other words, no business line was singled out or discontinued.

Nearly 80 people remain on staff. The company is hiring for several open positions, one source close to the company said. (None were listed on its LinkedIn page as of Thursday evening, but the source said the company is relying on inbound inquiries, recruiters and networking for prospects). This person and another insider described the cuts as “standard year-end” activity.

A third source, a former employee, said Galaxy had hired people expecting that the digital asset markets would develop more quickly than they…