Quantum Threats Lurk in Crypto Wallet Shadows

The first sign that quantum computing has broken modern cryptography may not be a high-profile theft. Instead, it could resemble an unexplained breach with no forensic evidence.

Christopher Smith, CEO and co-founder of blockchain startup Quantus Network, says this could be the real warning sign: a wave of crypto wallet breaches where investigators find no trace of how the attacker got in.

A powerful enough quantum computer could derive a private key from a public key exposed onchain. This would let an attacker drain funds without ever touching a wallet, device, or exchange system.

In a highly secure environment, Smith says, 'the only forensic evidence would be that there was no breach.'

Tether's minting key is identified as potentially the most valuable target of all. A quantum attacker could mint tokens from an administrative wallet and dump them on the market before Tether could shut it down.