Dragonfly managing partner Haseeb Qureshi has challenged warnings that cryptocurrency users should simply move their holdings to fresh addresses to defend against the possibility of artificial intelligence breaking cryptographic signatures.
According to Cointelegraph, Qureshi described Ethereum researcher Justin Drake’s warning as “cryptographic doomerism” and argued that address migration would not provide a complete answer. He said coins moved to new addresses could remain protected only while they stayed there. If other assets were compromised and sold in large quantities, the wider market could still be damaged, potentially undermining the value of supposedly safer holdings.
Qureshi proposes a recovery mechanism
Rather than relying mainly on users moving funds, Qureshi called on blockchain networks to prepare technical safeguards in advance. His proposal, called “Cryptographic Recovery Mode,” would use a hash-based backup-signature system linked to users’ addresses.
Under the concept, validators could force a recovery process if the cryptographic signatures used by a blockchain were broken. A hash is a one-way cryptographic function commonly used to help verify data, while a digital signature allows a network to confirm that a transaction was authorized by the holder of a private key. The proposal would therefore seek to give users an alternative recovery path if existing signatures became unreliable.
The debate focuses on the elliptic curve digital signature algorithm, or ECDSA, which is used to secure many cryptocurrency wallets. A successful attack on that system could allow unauthorized access to funds associated with exposed public keys.
Bitcoin exposure highlights scale of concern
Glassnode data cited in the report indicates that 6.26 million Bitcoin are currently held in vulnerable addresses, representing more than 31% of the total Bitcoin supply. About 4.33 million BTC are exposed because their addresses have been reused, while another 1.94 million BTC are vulnerable because of their address format.
Moving the first group to a new address could remove that particular exposure, according to the material. However, the scale of the figures explains why Qureshi argues that a network-wide response may be needed rather than relying solely on individual users.
Nearly 1.8 million BTC from the exposed total are held on cryptocurrency exchanges. The report said 57% of all exchange balances are currently exposed.
Drake warning prompts industry discussion
Drake wrote that advances in artificial intelligence could allow ECDSA to be broken sooner than previously expected. He said the possibility should be considered on a timescale of “months, not years,” citing an OpenAI report on progress in mathematics.
Drake advised users to gradually transfer funds to wallets whose public keys had not been exposed. Ethereum co-founder Vitalik Buterin agreed that the industry should take the risks associated with AI-accelerated mathematics seriously, but said he did not recommend that users rush to move their funds.
Current market picture
Moneyiar market data at the stated times shows Solana at $109.3944591431, down 0.22% over 24 hours and 9.76% over seven days, as of October 11, 2026, 11:44 a.m. +03:30. Decimal was $0.3992143654, up 3.01% in 24 hours and down 1.38% over seven days at the same time. RealLink was $0.0100747766, down 86.56% over 24 hours and 86.35% over seven days as of September 15, 2026, 7:04 a.m. +03:30. REAL was $0.1927052765, up 3.26% in 24 hours and down 2.28% over seven days as of October 8, 2026, 6:54 p.m. +03:30.
