Is Crypto Safe? The Rising Threat from AI and Quantum Tech

A major concern is rising in the crypto world: artificial intelligence (AI) and quantum computing could one day break the very technology that makes cryptocurrencies secure. What was once thought to be “unhackable” may not stay that way for long. Experts are warning that if action is not taken soon, billions of dollars in digital assets could be at risk.

The discussion reached new urgency in October 2025, after an op-ed published by blockchain security expert and former Chainalysis CEO Michael Gronager. He warned that both AI and quantum computing pose serious, near-term threats to the global crypto industry not in decades, but potentially within years.

Why AI Is Becoming a Security Threat

AI has evolved rapidly, and it is already being used in advanced forms of cybercrime. According to Gronager, AI can perform highly sophisticated attacks such as deepfake-based phishing, wallet key guessing, and automated smart contract exploitation. These tools make it easier than ever for hackers to target individuals and crypto platforms. AI systems can now detect transaction patterns, imitate voice and video messages to trick users, and even launch 24/7 automated attacks that never tire.

A report from Chainalysis revealed that AI-related scams increased by 300% in 2025 compared to the previous year. Many of these scams targeted decentralized finance (DeFi) protocols and personal wallets through realistic impersonation schemes.

The Quantum Computing Challenge

While AI poses immediate threats, quantum computing represents a long-term but potentially devastating one. Quantum computers are not just faster versions of today’s machines; they work on entirely new principles that could break modern encryption systems. Most cryptocurrencies rely on elliptic curve digital signature algorithms (ECDSA) for security. This form of encryption keeps private keys safe, ensuring that only the rightful owner can move their funds. However, a powerful enough quantum computer could use Shor’s algorithm to solve these mathematical puzzles easily, revealing private keys and exposing wallets.

Current estimates suggest that quantum computers could be strong enough to break ECDSA by around 2030. Companies like IBM and Google are already developing prototypes. IBM’s recent 1,000-qubit processor and Google’s Sycamore chip show that the technology is advancing faster than expected.

How the Industry Is Responding

To protect against these risks, experts are pushing for post-quantum cryptography (PQC) new cryptographic methods designed to resist quantum attacks. In 2024, the U.S. National Institute of Standards and Technology (NIST) introduced PQC standards for government systems. However, the crypto industry has been slow to adopt them. Gronager and others argue that developers need to start upgrading wallets, exchanges, and blockchains now. Suggested steps include building AI-resistant multi-signature wallets, performing industry-wide audits, and replacing outdated encryption systems with PQC-based models.

These changes are not simple. Updating every blockchain protocol to be quantum-safe could take years and require coordination across thousands of platforms. Still, experts believe it is a necessary step to ensure the long-term survival of digital assets.

Current Threat Landscape (as of 2025)

 

Threat Type	Main Risk	Expected Impact Year	Possible Solution
AI-based scams	Deepfake phishing, automated key cracking	Ongoing	AI-detection tools, better user verification
Quantum computing	Breaking ECDSA encryption	2030 (estimated)	Post-Quantum Cryptography (PQC)
Smart contract exploits	Flash loan and DeFi vulnerabilities	Ongoing	Stronger audits, AI monitoring
Social engineering	Fake customer support or wallet updates	Ongoing	User education and awareness

The Cost of Ignoring the Threat

In 2025 alone, global crypto-related hacks and thefts have caused $1.7 billion in losses, much of it linked to poor security measures and outdated systems. Experts warn that if the industry delays adapting to AI and quantum threats, the damage could multiply in the years to come.

However, the danger also presents an opportunity. Companies that lead the shift toward quantum-resistant technology could become the new security leaders of the digital economy. Analysts predict that by 2030, the global market for quantum-safe crypto systems could exceed $10 trillion, as more investors demand stronger protection for their digital assets.

A Crossroads for the Crypto Industry

The crypto ecosystem is facing one of its biggest tests yet. The same innovation that built this $4 trillion industry must now be used to protect it. Blockchain developers, exchanges, and governments will need to cooperate on new encryption standards, transparent audits, and user protection systems. If these threats are taken seriously, the result could be a stronger, safer, and more trusted crypto market. But if ignored, AI and quantum breakthroughs could undermine years of progress and shake the very foundation of digital finance.

In short, the message from experts is clear, the crypto industry must evolve its defenses before technology outpaces its protections. The race has already begun not for profit, but for survival.