TLDR
- Swan Bitcoin founder Cory Klippsten says AI is a nearer threat to Bitcoin than quantum computing.
- He says hackers use large language models to probe crypto systems for flaws.
- Mercado Bitcoin paused deposits and withdrawals after an estimated $46 million left its wallets.
- Binance lost $6.3 billion in an Oct. 29 hack that the FBI tied to North Korean hackers.
- Klippsten puts quantum threats to Bitcoin at least a decade away.
Cory Klippsten, the founder and chief executive of Swan Bitcoin, says artificial intelligence is a more immediate danger to Bitcoin security than quantum computing. He made the comments on Cointelegraph’s Chain Reaction.
Klippsten said hackers are using large language models to look for weaknesses in crypto systems. He said attackers can find security flaws with just a few prompts.
“I think we’re finding out that the near term threat is actually AI,” he said. He described hackers using these tools to go “poking through everything.”
He said this pattern keeps showing up again and again. His warning comes as crypto exchanges deal with a string of security breaches.
Recent exchange breaches
Brazil’s Mercado Bitcoin suspended deposits and withdrawals on Monday after a security incident. Researchers estimate that more than $46 million left its wallets.
Days earlier, Binance lost $6.3 billion in a hack on Oct. 29. The Federal Bureau of Investigation (FBI) attributed that attack to North Korean hackers.
The cause of the Mercado Bitcoin incident has not been tied to any group yet. Loss figures for both events are estimates reported in connection with each incident.
Klippsten did not link either breach to a specific tool. He pointed to them as examples of the problem he described.
Quantum computing timeline
Klippsten dismissed much of the concern about quantum computing as speculation. He estimated that quantum computers able to threaten Bitcoin’s cryptography are at least a decade away. He said it could take longer.
He said the Bitcoin network could adopt quantum-resistant protections if the threat became credible. In his view, rushing to add them now would bring needless complexity.
He also spoke about how crypto firms should handle security. He said companies cannot rely on hastily built software to protect customer assets.
“You need to actually know what the hell you’re doing from a security standpoint,” he said.
Klippsten also said some crypto startups and investors have used quantum fears to attract funding. He described much of that talk as fear, uncertainty and doubt, often called “FUD.”
He said it is not an imminent security concern in his view. He made these remarks in the same Cointelegraph interview.
Mercado Bitcoin halted deposits and withdrawals on Monday, Nov. 2, following the incident. Researchers’ estimate of more than $46 million in outflows remains the latest figure reported.
