Binance founder Changpeng Zhao (CZ) has proposed a controversial plan to freeze up to 1 million Bitcoin believed to be linked to Satoshi Nakamoto if those coins remain unmoved after a future transition to quantum-resistant cryptography. Speaking on the June 18 episode of the Galaxy Brains podcast hosted by Galaxy Research President Alex Thorn, Zhao argued that quantum computing does not pose an insurmountable threat because quantum-resistant systems already exist, but coordinating a network-wide migration would be the true challenge.
Migration Window and Freeze
Under Zhao's proposal, after the network upgrades to quantum-resistant cryptography, holders would be given six to twelve months to move their coins to protected addresses. Any Bitcoin remaining in legacy addresses after that period should be frozen under the new protocol. Zhao emphasized that leaving vulnerable addresses active indefinitely could allow quantum-capable attackers to seize coins whose owners are no longer participating in the network, creating an unfair redistribution where ownership transfers to whoever cracks the addresses first. He stressed that the decision is not his alone and would require community consensus.
Divided Developer Opinions
Zhao's remarks come amid ongoing debate among Bitcoin developers and advocates about handling coins secured by older cryptographic standards. A June report from Coinbase's advisory board, with contributions from Ethereum Foundation researcher Justin Drake, recommended starting to plan a migration path to post-quantum cryptography before quantum computers become a realistic threat. The report suggested setting a deadline for migrating coins using ECDSA and Schnorr signatures, with freezing of unmigrated coins to prevent future attackers from acquiring large amounts and destabilizing the market.
However, critics cited in the report argue that freezing dormant coins amounts to confiscating private property, conflicting with Bitcoin's principles of immutability and user control.
The Property Rights Controversy
Galaxy Digital's Alex Thorn is one of the most vocal opponents of freezing dormant Bitcoin. As reported by crypto.news in May, Thorn believes Satoshi's coins should remain untouched regardless of technological developments, as altering ownership rights could weaken Bitcoin's credibility as a neutral monetary system. He noted that the estimated 1 million BTC stash is spread across roughly 22,000 addresses, many containing around 50 BTC, making a large-scale quantum attack more difficult than assumed. Thorn warned that any attempt to override ownership could face strong community resistance, with some users preferring a severe market decline over protocol changes that alter control over long-dormant wallets, including those of Bitcoin's creator.
The debate highlights the tension between technical security and property rights in the Bitcoin community as it contemplates future quantum threats. How the community balances these concerns will test its governance and core principles.