Bitcoin Developer: Better to Freeze $420B in Lost Coins Than Risk Hacker Theft

A top Bitcoin developer has sparked controversy by suggesting it might be better to freeze 5.6 million "lost" bitcoins (worth about $420 billion) rather than risk hackers stealing them in the future.

Jameson Lopp, a well-known Bitcoin developer, is worried about quantum computers (super-powerful computers that don't exist yet but could break current security). These future machines might be able to crack the passwords protecting old Bitcoin wallets that haven't been touched in years.

Here's what you need to know:

• 5.6 million bitcoins are believed to be "lost" (owners lost their passwords or died) • These coins are worth approximately $420 billion at current prices • Old Bitcoin wallets use security that quantum computers could potentially break • Lopp suggests making these old wallets invalid before hackers can steal from them

The proposal, called BIP-361, would gradually phase out old-style Bitcoin security and eventually block transactions from wallets that don't upgrade. Think of it like forcing everyone to update their phone's security software – except if you don't update, your money becomes frozen forever.

Lopp admits he "doesn't like" his own proposal and hopes it's never needed. However, he believes freezing the coins is better than letting hackers steal them, which could crash Bitcoin's price and hurt everyone.

Critics argue this goes against Bitcoin's core promise: that no one can freeze or take your money. They worry this could set a dangerous precedent where Bitcoin developers have too much power over people's funds.

The debate highlights a fundamental tension in cryptocurrency: balancing security against the principle that your money should always remain yours, no matter what.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/business/2026/04/15/bitcoin-developer-jameson-lopp-says-it-s-better-to-freeze-5-6-million-btc-than-let-hackers-have-them