- Dragonfly managing partner Haseeb Qureshi called Ethereum researcher Justin Drake’s “bunker mode” warning “cryptographic doomerism,” arguing that moving tokens to fresh addresses won’t protect against AI breaking cryptographic signatures.
- Qureshi proposed a “Cryptographic Recovery Mode” using hash-based backup signatures to let validators force recovery if cryptographic signatures are broken.
- Glassnode data shows 6.26 million Bitcoin (BTC) — about 31% of supply — sits in vulnerable addresses; nearly 1.8 million BTC on exchanges are exposed.
- Drake warned AI could break ECDSA “in months, not years,” while Vitalik Buterin said the risk should be taken seriously but users need not rush to move funds.
In a Thursday X post, Dragonfly managing partner Haseeb Qureshi criticized Ethereum researcher Justin Drake’s “bunker mode” warning as “cryptographic doomerism,” arguing that moving tokens to fresh addresses would not protect them from Artificial Intelligence breaking cryptographic signatures.
Qureshi wrote that fresh-address holdings would be “worthless if all of the other coins are being hacked and mass-sold.” Instead, he proposed a “Cryptographic Recovery Mode,” a hash-based backup signature plan that would let validators force recovery if cryptographic signatures break.
Drake had advised users to gradually migrate funds to fresh wallets, and warned that AI advancements could break the elliptic curve digital signature algorithm (ECDSA) “in months, not years,” citing a Tuesday OpenAI.com/index/sharing-ai-progress-in-mathematics/”>OpenAI report on AI progress in mathematics.
However, Ethereum co-founder Vitalik Buterin agreed the industry should take “AI-accelerated math seriously” but said he does not recommend users rush to move funds.
Glassnode data shows more than 6.26 million Bitcoin (BTC), or roughly 31% of supply, sits in vulnerable addresses. According to Glassnode co-founder Rafael Schultze-Kraft, 4.33 million BTC are exposed due to address reuse, while 1.94 million BTC are exposed through their address format.
Consequently, nearly 1.8 million BTC on exchanges are among the exposed supply, meaning 57% of all exchange balances are vulnerable. A chart from Schultze-Kraft shows the share of Bitcoin supply with exposed public keys.
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