Bitcoin faces an unprecedented security crisis as developers unveil a radical proposal to freeze quantum-vulnerable wallets—including potentially Satoshi Nakamoto's original holdings—before advanced quantum computers can crack exposed private keys. The BIP-361 proposal, introduced today by cypherpunk Jameson Lopp and five contributors, triggers urgent defensive action against a looming quantum threat that could destabilize the entire Bitcoin ecosystem. The draft outlines a three-phase migration plan, beginning with a critical three-year window post-activation to secure legacy P2PK addresses, marking the most significant protective upgrade in Bitcoin's history.

BIP-361 targets Satoshi’s BTC stash

The proposal targets approximately 6.7 million BTC (~34% of total supply) held in legacy formats, such as P2PK, where public keys are already exposed. It explicitly mentions that Satoshi Nakamoto’s early reserves totaling about 1.1 million BTC are highly vulnerable to quantum derivation.

Frozen funds remaining at these addresses will supposedly become unspendable using the most common BTC transfer methods today.

The main reason this matters is that academic roadmaps now estimate a cryptographically relevant quantum computer as early as 2027-2030, according to a mid-2025 McKinsey report. And this is worrying because victims may not know the attack is underway.

Quantum attackers could derive a private key from known public keys, then transfer all the funds weeks or months later, covertly bleeding out victims under the radar of chain watchers.

The BIP-361 proposal emphasizes that there is near-certainty that all P2PK private keys will be uncovered and used to drain funds from unsuspecting victims. 

The proposal argues that the longer this migration is postponed, the harder it will become to coordinate exchanges, custodians, wallets, and miners.

Economically motivated attackers could stay hidden for as long as possible, while malicious attackers could be out to destroy everything. Some may even be motivated to destroy value and trust in Bitcoin rather than extract value. A clear timeline with defined deadlines is the only credible defense. 

MARA Protocol engineer says BIP-361 will quantum-harden Bitcoin

Hunter Beast, MARA Protocol Engineer and co-author of BIP-360, describes the broader BIP-361 roadmap as a necessary precaution to quantum-harden Bitcoin before threats of the quantum computing era become practical.

He emphasizes that quantum threats are not as far from reality as currently perceived. Beast notes that the accelerated development of new quantum techniques suggests that the timeframe to act may be as short as three years. 

The BIP-361 proposal also emphasizes that Bitcoin remains secure only for the foreseeable future, warning that the industry should avoid waiting for last-minute emergency responses. However, critics argue that the forced migration and freezing of funds are authoritarian and contrary to Bitcoin’s ethos as an “opt-in” decentralized asset. 

Bitcoin researcher Mark Erhardt faced immediate pushback after circulating the proposal, with commenters labeling it confiscatory for its mandate to invalidate old signatures and freeze funds.

TFTC founder Marty Bent also characterizes the approach as inconsistent with the Bitcoin community’s long-standing expectations regarding the coin’s non-coercive nature.

Meanwhile, Bernstein analysts suggest that the market has already partially priced in quantum risks through recent drawdowns. The analysts view the threat as real but manageable without the need for an immediate, forced overhaul. 

Major players like Coinbase and BlackRock have also recently flagged quantum computing as a material risk to the crypto industry in regulatory filings. Their concern adds weight to the urgency of the BIP-361 discussion.

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