CZ Sparks Debate Over Freezing Satoshi’s Bitcoin to Counter Quantum Computing Threats

Binance founder Changpeng Zhao (CZ) has reignited discussion within the Bitcoin community after suggesting that dormant Bitcoin holdings, including wallets believed to belong to Bitcoin creator Satoshi Nakamoto, could eventually be frozen if they remain vulnerable to quantum computing attacks.

Speaking on the Galaxy Brains podcast with Galaxy Research head Alex Thorn, CZ presented the idea as a question for the broader Bitcoin community rather than a proposal he personally intends to implement. He later clarified that reports claiming he wanted to freeze Satoshi’s Bitcoin for a year misrepresented his comments.

The debate follows growing concerns about quantum computing and its potential impact on Bitcoin security. Earlier this year, Google Quantum AI released research indicating that future quantum computers may be able to break the cryptographic systems protecting digital signatures with fewer than 500,000 qubits, significantly reducing previous estimates.

Security experts warn that Bitcoin addresses with exposed public keys could become targets for quantum attacks. If a sufficiently powerful quantum computer emerges, attackers could theoretically derive private keys and gain access to funds stored in vulnerable wallets. Transitioning Bitcoin to quantum-resistant cryptography is considered the long-term solution, but implementing such changes across the network could take years.

According to estimates, more than one-third of Bitcoin’s supply has already revealed public keys on-chain. This includes the roughly 1.1 million BTC believed to have been mined by Satoshi Nakamoto between 2009 and 2010. At current market prices, those holdings are valued at approximately $70 billion.

CZ’s comments align with ideas proposed in BIP-361, a draft proposal that would gradually restrict transactions from quantum-vulnerable addresses before ultimately invalidating legacy signatures. Supporters argue that locking vulnerable coins may prevent theft, while critics view any forced restriction as a violation of Bitcoin’s principle that ownership cannot be altered without a private key.

The issue remains highly controversial. While some believe proactive measures are necessary to protect the Bitcoin network from future quantum threats, others argue that freezing dormant Bitcoin wallets would set a dangerous precedent. As the discussion continues, the Bitcoin community faces a difficult choice between preserving long-standing principles and adapting to emerging technological risks.