A leading Ethereum researcher has warned that the signatures protecting Bitcoin and Ethereum wallets could be broken sooner than expected, but no practical attack has been shown and most people do not need to act urgently. The sensible response for now is good everyday habits, not panic.
On 7 October 2026 Ethereum Foundation researcher Justin Drake urged the crypto industry to start planning, calmly, for a world where today’s wallet cryptography is no longer safe. This article explains what he said, why some coins are more exposed than others, and what ordinary users in Ireland and the EU can sensibly do.
Key takeaways
- Justin Drake suggested the industry “calmly begin planning for ‘bunker mode’”, gradually moving funds to fresh addresses whose public keys are still hidden.
- He said ECDSA, the signature scheme used by Bitcoin and Ethereum, could be broken by AI-accelerated mathematics before quantum computers arrive, in the worst case “in months not years”.
- No practical attack has been demonstrated, and Vitalik Buterin has advised against rushing to move funds.
- Glassnode estimates over 6 million BTC, about 31% of supply, sits at addresses with public keys already visible on-chain.
- For most people, the practical steps are simple: avoid address reuse, keep wallet software updated, and ignore “quantum-safe wallet” sales pitches.
What happened
In a post on X on 7 October 2026, Justin Drake, a researcher at the Ethereum Foundation, urged the industry to “calmly begin planning for ‘bunker mode’”. By this he meant gradually moving funds to fresh addresses whose public keys have not yet been revealed and remain hidden behind a hash.
Drake argued that ECDSA could be broken even before “Q-Day”, the point at which quantum computers become powerful enough to crack it. His concern is that AI-accelerated mathematics might find a shortcut first, “in the worst case in months not years”. He defined a break as recovering a private key in about a week on available hardware. He also urged large custodians to harden their cold storage, and he told people not to panic.
Vitalik Buterin, Ethereum’s co-founder, has previously said this kind of risk is plausible within about two years, while advising against rushing to move funds. Views differ on timing, and nobody can say with certainty when, or whether, such a break will happen.
Why your public key matters
Every crypto wallet is built on a pair of keys. Your private key signs transactions and must stay secret; your public key is derived from it and lets the network check your signatures. If you need a refresher, see our guide to private keys and public keys.
Most modern addresses do not show your public key directly. Instead, they show a hash of it, a short fingerprint that cannot be reversed. The public key only appears on the blockchain when you send funds, because the network needs it to verify your signature. From that moment it is public forever.
Today, knowing a public key does not help an attacker: working backwards from a public key to a private key is considered practically impossible with current computers and methods. The worry raised by Drake is that a new mathematical technique, or eventually a quantum computer, could make that step feasible. If it did, any coins sitting at an address with a visible public key would be at risk, while coins behind an unrevealed hash would have an extra layer of protection.
Which coins are more exposed?
Exposure depends on how an address has been used, not just how much it holds. Our explainer on what a crypto wallet address is covers the basics of address formats.
| Situation | Public key visible on-chain? | Why |
|---|---|---|
| Bitcoin address that has received funds but never sent any | Usually no | Only a hash of the public key is recorded |
| Bitcoin address reused after sending | Yes | The first spend revealed the key, and later deposits sit behind it |
| Very early Bitcoin outputs (pay-to-public-key, P2PK) | Yes | The public key was written directly into the output |
| Bitcoin Taproot (P2TR) addresses | Yes | The address itself contains a form of public key |
| Ethereum account that has sent at least one transaction | Yes | The key can be recovered from any signed transaction, and accounts usually keep one address |
This is why Glassnode’s estimate matters: over 6 million BTC, roughly 31% of supply, already sits at addresses whose public keys are visible. Address reuse is a big part of the picture. Each time you send from an address and keep using it, any balance left there or sent there later sits behind a key that is already public.
What “post-quantum” signatures mean
Post-quantum cryptography means signature and encryption methods designed to resist attacks from quantum computers. One well-studied family is hash-based signatures, whose security rests on hash functions rather than on the kind of maths that ECDSA relies on. The trade-off is that these signatures are usually much larger, which raises costs and technical challenges for a blockchain.
Ethereum’s long-term roadmap includes moving towards quantum-resistant cryptography. Changes like this take years of research, testing and community agreement, and they are normally delivered through network upgrades and wallet updates rather than something individual users have to build themselves.
What you can sensibly do now
No practical attack has been demonstrated, and no urgent action is needed for most people. Good habits still reduce your exposure if the picture changes.
- Avoid address reuse. Most modern Bitcoin wallets create a new receiving address automatically. Use it rather than sharing the same address repeatedly.
- Keep wallet software and firmware updated. If migration tools or new address types arrive, they will come through official updates.
- Ignore “quantum-safe wallet” pitches. Scammers follow headlines. Be wary of anyone selling a special product, asking you to move funds to their address, or requesting your recovery phrase.
- Protect your seed phrase as usual. Today, stolen recovery phrases and phishing are far bigger, proven risks than quantum attacks.
- Follow official channels. If the Bitcoin or Ethereum communities agree on a migration plan, reputable wallet providers and exchanges will explain the steps.
Sources
Frequently asked questions
Has anyone actually broken Bitcoin or Ethereum signatures?
No. No practical attack has been demonstrated. Justin Drake’s warning is about a possible future risk, and experts disagree about how soon, or whether, it could happen.
Should I move all my crypto right now?
Most people do not need to take urgent action. Drake himself said not to panic and talked about calm, gradual planning, and Vitalik Buterin has advised against rushing. Avoiding address reuse and keeping your wallet updated are sensible steps that carry little cost.
What is “bunker mode”?
It is Drake’s term for gradually moving funds to fresh addresses whose public keys are still hidden behind a hash, so that a future break of ECDSA would be harder to exploit against them.
Is a “quantum-safe wallet” worth buying?
Be very cautious. Any genuine move to quantum-resistant cryptography is expected to arrive through network upgrades and official wallet updates. Unsolicited offers of special “quantum-proof” products are a common scam pattern.
Next step: learn how crypto transactions work to see exactly when your public key is revealed, then compare hot and cold wallets to review how you store your funds. Crypto-assets carry risk, and security habits matter more than headlines.
