Binance founder Changpeng Zhao proposed freezing the estimated 1.1 million bitcoin believed to belong to Bitcoin creator Satoshi Nakamoto if the coins are not moved within a 6 to 12 month window. The proposal addresses quantum computing threats that could eventually break the cryptography protecting old wallets, with Satoshi's holdings worth about $68 billion at bitcoin's current price of roughly $62,000. The suggestion has divided Bitcoin investors and developers over whether network security concerns justify intervention that could compromise Bitcoin's core promise of property rights without central authority permission.
CZ Proposes 6-12 Month Window to Move Satoshi's Bitcoin
Zhao's argument is based on a security concern that if quantum computing eventually makes older Bitcoin signatures vulnerable, dormant wallets could be exposed to theft. Satoshi's coins would be the most visible target because of their size, age, and market importance.
"If we don't do anything with it, then we're basically giving it to somebody who's going to hack it," Zhao said.
The idea would give Satoshi 6 to 12 months to move the coins. If there is no movement, the community could then decide whether to freeze the addresses.
Michael Terpin Argues Freezing Creates Permission in Permissionless System
Michael Terpin, founder and CEO of Transform Ventures and author of Bitcoin Supercycle, said the proposal would cross a line Bitcoin has not crossed before.
"While I appreciate the proactivity in CZ's proposal, it begins a slippery slope of creating permission in a permissionless system relative to personal property," Terpin said.
Terpin argued that even if Satoshi is dead, the market could survive a one-time shock better than it could survive a precedent that allows the network to seize or freeze coins.
"If indeed [Satoshi] is dead, as many Bitcoiners believe, then only a quantum hack unlocks the coins. While it would hurt the price substantially if the coins were dumped, it would be a one-time episode and post-quantum bitcoin would recover," he said.
Terpin pointed to the long debate over SegWit as evidence that fast consensus would be unlikely. "Considering it took years just to implement SegWit, I doubt a quick consensus could be formed here," he said.
Jameson Lopp Authors BIP 361 for Quantum-Resistant Migration
Jameson Lopp, co-founder and chief security officer at Casa, said CZ's remarks should be understood less as a formal proposal and more as a warning about the wider quantum threat.
"I don't really consider it a proposal so much as him musing upon the threat," Lopp said.
Lopp has authored Bitcoin Improvement Proposal 361, which outlines a phased migration to quantum-resistant cryptography. The aim is to create a structured timeline so the ecosystem does not wait until a practical attack is possible.
"The goal is to create incentives and deadlines so users, exchanges, custodians, wallets and institutions actually migrate in a timely fashion," Lopp said.
"I think this is not a binary debate of 'to freeze or not to freeze,'" he said.
Matt Hougan Supports Nic Carter's Legal Trust Proposal
Matt Hougan, chief investment officer at Bitwise, rejected both extremes: allowing the coins to be stolen and freezing them outright. Instead, he pointed to a proposal from Castle Island Ventures partner Nic Carter that would place Satoshi's bitcoin into a legal trust until ownership could be proven through historical electronic records.
"I actually like Nic Carter's proposal," Hougan said. "It avoids the philosophical challenges of both CZ's suggestion and the 'let whatever happens' perspective."
Hougan said any change involving Satoshi's coins would be difficult for the market because investors already treat them as effectively unavailable.
"I don't think there is any way that developments around Satoshi's coins are positive for the ecosystem," he said. "The market already accounts for them as frozen forever."
FAQ
What did Changpeng Zhao propose regarding Satoshi Nakamoto's bitcoin?
Changpeng Zhao proposed freezing the estimated 1.1 million bitcoin believed to belong to Satoshi Nakamoto if the coins are not moved within a 6 to 12 month window. The proposal is based on security concerns that quantum computing could eventually break the cryptography protecting old wallets, making dormant coins vulnerable to theft.
Why does Michael Terpin oppose freezing Satoshi's bitcoin?
Michael Terpin said the proposal would begin a slippery slope of creating permission in a permissionless system relative to personal property. He argued that even if Satoshi is dead, the market could survive a one-time shock from quantum hacking better than it could survive a precedent that allows the network to seize or freeze coins.
What is Bitcoin Improvement Proposal 361?
Bitcoin Improvement Proposal 361, authored by Jameson Lopp, outlines a phased migration to quantum-resistant cryptography. The goal is to create incentives and deadlines so users, exchanges, custodians, wallets and institutions actually migrate in a timely fashion before practical quantum attacks become possible.
