Swan Bitcoin founder Cory Klippsten believes artificial intelligence poses a more immediate threat to Bitcoin's security than quantum computing, warning that hackers are already deploying AI tools to exploit vulnerabilities as crypto exchanges endure a string of security breaches.

Speaking on Cointelegraph's Chain Reaction, Klippsten characterized much of the alarm surrounding quantum computing as speculative. In his view, the rapid advance of large language models (LLMs) presents a more pressing challenge, because attackers are using the technology to probe for security weaknesses.

"I think we're finding out that the near term threat is actually AI. That it's these LLMs in the hands of hackers going and poking through everything. And that's where you see this over and over and over again," he said.

The warning arrived amid a series of high-profile exchange incidents that have kept operational security at the center of the industry's agenda. Brazil's Mercado Bitcoin suspended deposits and withdrawals on Monday following a security incident, with researchers estimating that more than $46 million had left its wallets. Days earlier, Binance lost $6.3 billion in an Oct. 29 hack that the Federal Bureau of Investigation (FBI) attributed to North Korean hackers.

Bitcoin has time to address quantum risks

Klippsten estimated that quantum computers capable of threatening Bitcoin's cryptography remain at least a decade away, and potentially longer. He argued that the network could adopt quantum-resistant protections if the threat became credible, but cautioned that rushing to implement them now would introduce unnecessary complexity.

That timeline allows for a deliberate transition: altering Bitcoin's signature scheme would require broad consensus among developers, miners and node operators, and engineers already have reference points to work from, as the U.S. National Institute of Standards and Technology finalized its first post-quantum cryptography standards in 2024.

He also stressed that cryptocurrency companies cannot rely on hastily developed software when safeguarding customer assets. "You need to actually know what the hell you're doing from a security standpoint," he said.

Klippsten further suggested that some cryptocurrency startups and investors had used fears surrounding quantum computing to attract funding, characterizing much of the discussion as fear, uncertainty and doubt ("FUD") rather than an imminent security concern.

Near term, the items to watch are concrete: whether Mercado Bitcoin restores deposit and withdrawal services as it addresses the security incident, and how quantum-resistant upgrade discussions progress within Bitcoin's consensus-driven development process while the AI-assisted attacks Klippsten described remain the active concern.

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Source: Cointelegraph