According to Mars Finance on October 9, Haseeb Qureshi, managing partner at Dragonfly, has taken issue with Ethereum researcher Justin Drake’s concept of “Bunker Mode,” labeling it as “cryptography doomsaying.” Qureshi contended that simply moving assets to a different address does not adequately address the underlying issue if AI manages to undermine cryptographic signature systems. He noted that if large-scale thefts and opportunistic sales occur from other addresses, even temporarily transitioned assets could be drastically affected. To mitigate these concerns, Qureshi suggested that blockchain networks implement a “cryptographic recovery mode.” This approach would allow users to set up hash-based backup signing schemes tied to their addresses, which would enable validators to activate asset recovery processes when current cryptographic signatures are at risk. As reported by Glassnode, around 6.26 million BTC currently in circulation face potential exposure of their public keys, making up more than 31% of Bitcoin’s overall supply. Among these, approximately 4.33 million BTC are threatened due to the reuse of addresses—this risk could be eliminated by moving to new addresses—while about 1.94 million BTC are vulnerable because of address format issues. The exposure linked to exchanges and this risk nears 1.8 million BTC, amounting to roughly 57% of total BTC holdings by exchanges. Previously, Justin Drake cautioned that AI could hasten the decryption of the elliptic curve digital signature algorithm (ECDSA), a critical component in crypto wallets, with potentially severe outcomes emerging in months instead of years. Ethereum co-founder Vitalik Buterin has also expressed concern that the hazards posed by AI-enhanced mathematical advancements warrant serious consideration, though he advises users against rushing to relocate their assets.
