Europol warns crypto wallets are primary quantum computing risk
Europol warned that crypto wallets are the main vulnerability facing future quantum attacks rather than blockchains themselves, urging developers and users to begin transitioning to post-quantum cryptography.
Europol's European Cybercrime Centre published two reports assessing quantum computing security threats, concluding that crypto wallets represent the primary point of exposure rather than the underlying blockchains. According to Unchained, the agency noted that while sufficiently powerful quantum computers do not yet exist and their timing remains uncertain, such machines could derive a wallet's private key from its public key to authorize illicit transactions. In contrast, the hash functions securing blockchains remain largely resistant to quantum attacks.[2][3][7]
The agency highlighted significant vulnerabilities across existing digital assets. An estimated 6 million to 6.9 million Bitcoin—roughly 30% of Bitcoin's total supply—sit in addresses with exposed public keys, according to BSCN and Unchained. Europol stated that no cryptographic fix exists for wallets with already-exposed public keys, leaving the transfer of funds to new, unexposed wallets as the only defense. Furthermore, citing a 2024 paper, Europol noted that migrating every Bitcoin unspent transaction output (UTXO) would require at least 76 days of cumulative network downtime, or roughly 300 days if a quarter of block space were allocated to the task.[1][2][5]
Despite the warning, Europol concluded that cryptocurrencies will not collapse due to quantum computing, predicting that proactive adaptation is the most likely outcome. The agency urged wallet providers to test and deploy post-quantum cryptography (PQC) and called on blockchain developers to integrate quantum-resistant algorithms into core protocols. However, it cautioned that NIST-standardized PQC signatures are 10 to 120 times larger than Bitcoin's ECDSA signatures, which could congest block space and increase fees. In a second report developed with University Carlos III of Madrid, Europol found no clear evidence that store-now-decrypt-later attacks are currently deployed systematically at scale.[2][3][4][7]
Key facts
- Europol warned that crypto wallet private keys are the primary point of exposure to future quantum attacks, whereas blockchain hash functions remain largely resistant.
- An estimated 6 million to 6.9 million Bitcoin, accounting for about 30% of total supply, are held in addresses with exposed public keys.
- Europol stated that no cryptographic fix exists for wallets with exposed public keys, meaning users must migrate funds to new wallets before attacks occur.
- Upgrading all Bitcoin UTXOs to post-quantum signatures is estimated to take at least 76 days of cumulative downtime, or roughly 300 days if 25% of block capacity is used.
- NIST-standardized post-quantum signatures are 10 to 120 times larger than Bitcoin's ECDSA signatures, which could overload block space and inflate transaction fees.
- Europol concluded that cryptocurrencies will not collapse from quantum computing, expecting adaptation rather than systemic failure.
- A second Europol report prepared with University Carlos III of Madrid found no clear evidence of systematic, large-scale store-now-decrypt-later attacks.
Sources · 7 sources
- BS
BSCN@BSCNewsPost on X ·
Europol Flags 30% Of Bitcoin Supply as Quantum Vulnerable Europol (@Europol) has indicated that quantum computing is more of a danger to crypto wallets than the blockchain itself. An estimated 6-6.9 million bitcoin:native are in addresses with public keys exposed. This accounts for about 30% of Bitcoin’s total supply. Europol has advised gradual implementation of post quantum cryptography and upgrading crypto wallets. The agency also estimates migrating Bitcoin's UTXOs could require more than 76 days under certain assumptions. According to Europol, crypto is capable of resisting quantum computing except in the case of exposed wallets. Source: Crypto Briefing
Open source - UN
UnchainedArticle ·
Europol Urges Crypto Wallet Providers to Start Testing Post-Quantum Upgrades Now Europol published two reports on Wednesday about the security risks of quantum computing, and the one on cryptocurrencies names wallets as the most exposed part of the system. The agency urged organizations, policymakers and the crypto industry to “begin preparing now.” Europol’s European Cybercrime Centre wrote in its report that the keys controlling wallets and authorizing transactions are the “primary point of exposure.” A quantum computer with enough power could work out a wallet’s private key from its public key, letting an attacker spend the funds. The hash functions that secure the blockchain itself remain “largely resistant” to quantum attacks, Europol said in the report. Such machines do not yet exist, and Europol said in its press release that the timing of those capabilities “remains uncertain.” Unchained reported in April that a Google paper put 2029 as the year quantum computers could crack the cryptography securing Bitcoin and Ethereum. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . No Collapse Expected The report concluded that “Cryptocurrencies will not collapse due to quantum computing,” adding that their long-term security “requires proactive defence.” Among its key findings: “Proactive adaptation, rather than systemic collapse, is the most likely outcome.” Europol recommended that wallet providers “begin testing and deploying PQC-enabled wallets,” and that blockchain projects build post-quantum algorithms into their core protocols. Users should move funds to quantum-resistant wallets once those are available. For wallets whose public keys are already exposed, “no cryptographic fix exists,” the report said. The only solution it offered is moving funds to new, unexposed wallets before any attack occurs. Bitcoin Upgrade Costs Europol drew on a 2024 paper that put the minimum cumulative downtime for upgrading every bitcoin UTXO to post-quantum signatures at 76 days . As one example, Europol said the migration would take about 300 days if only a quarter of each block’s capacity were set aside for it. Europol also said signatures from NIST-standardized post-quantum schemes are 10 to 120 times larger than ECDSA signatures, the signature scheme Bitcoin relies on, which it warned could “overload block space” and push up fees. The second report examines attackers who store encrypted data now to decrypt it once more powerful computers exist. It was developed with University Carlos III of Madrid , and Europol said there is “no clear evidence” the technique is being used systematically at scale. Related Listen: One Type of Post-Quantum Cryptography Is Most Popular. Why Is Crypto Trying Out Three? The post Europol Urges Crypto Wallet Providers to Start Testing Post-Quantum Upgrades Now appeared first on Unchained .
Open source - CO
CoindeskArticle ·
Quantum computers threaten exposed private keys rather than blockchains, Europol warns EU law enforcement agencies urged developers, exchanges, and users to initiate phased post-quantum migrations immediately to prevent future unauthorized fund transfers.
Open source - CB
Crypto BriefingArticle ·
Europol warns crypto wallets are the weak spot for future quantum attacks The crypto industry must urgently adopt quantum-resistant cryptography to prevent future vulnerabilities and secure digital assets. The post Europol warns crypto wallets are the weak spot for future quantum attacks appeared first on Crypto Briefing .
Open source - LS
Laura Shin@laurashinPost on X ·
Europol's report says a quantum computer could derive a wallet's private key from its public key. For wallets whose keys are already exposed, it says "no cryptographic fix exists" and funds must move to new wallets before any attack. https://t.co/gWDAk49Zol
Open source - CO
CoinMarketCap@CoinMarketCapPost on X ·
LATEST: 🔒 Europol warns crypto wallets, not blockchains themselves, are the main weak point against future quantum attacks. https://t.co/NH6ZBeeEkH
Open source - DE
DecryptArticle ·
Europol Warns Crypto Wallets Are 'Primary Risk' for Quantum Attacks The EU police agency expects blockchains to adapt to the threat, while a second report weighs the risk of data stolen now and cracked later.
Open source