Dragonfly Partner Opposes Crypto Industry Descending Into 'Doom Panic': Asset Migration Is Not a Fundamental Solution; Instead, an Active Recovery Mechanism Should Be Established

Dragonfly Capital managing partner Haseeb Qureshi criticized Ethereum researcher Justin Drake’s proposed "Bunker Mode" as "cryptographic doomsdayism", arguing that once AI breaks through cryptographic signature mechanisms, simply migrating assets to new addresses will not fundamentally solve the problem. If assets in other addresses are stolen and sold off en masse, even if migrated assets are temporarily safe, their value could be severely impacted. Qureshi proposed that blockchain networks establish a "cryptographic recovery mode", allowing users to pre-bind hash-based alternative signature schemes to their addresses, with validators able to forcibly activate an asset recovery mechanism if existing cryptographic signatures are compromised. Per Glassnode data, addresses holding roughly 6.26 million BTC face public key exposure risks, accounting for over 31% of Bitcoin’s total supply. Of these, around 4.33 million BTC’s risk stems from address reuse, which can be eliminated by migrating to new addresses; another 1.94 million BTC faces risks due to address format issues. Exchanges’ related risk exposure nears 1.8 million BTC, representing roughly 57% of their total BTC holdings. Earlier, Justin Drake warned that AI could accelerate the cracking of the Elliptic Curve Digital Signature Algorithm (ECDSA) used in crypto wallets, with worst-case risks potentially emerging in months rather than years. Ethereum co-founder Vitalik Buterin also noted that risks from AI accelerating mathematical research should be taken seriously, but does not recommend users hastily transferring their assets.