Binance founder Changpeng “CZ” Zhao warned on Friday, October 23, 2026, that artificial intelligence may create serious security risks for cryptocurrency users even if it does not break Bitcoin’s underlying encryption. In a post on X, CZ said fears about AI directly hacking crypto are misplaced because internet and banking systems run on weaker encryption. However, he stressed that AI does not need to crack Bitcoin’s cryptography to cause damage.
CZ explained that previously leaked personal and corporate data can be exploited in phishing and social engineering attacks. AI makes fraudulent attempts more convincing, cheaper to produce, and harder to detect. He concluded that crypto security depends not only on blockchain encryption but also on protecting user accounts and personal information.
Chainalysis data cited in the coverage showed AI-enabled scams were 4.5 times more profitable than traditional ones in 2025, impersonation scams grew more than 1,400%, and total crypto scam revenue reached an estimated $17 billion. The discussion also addressed quantum computing. Experts noted no current machine can break Bitcoin’s signatures, but the Quantum Alliance estimated 6.4 million BTC, or 30% of supply, sits in addresses with visible public keys. Postquant Labs CTO Richard Carback suggested 2028 as a realistic timeframe for a machine capable of breaking today’s cryptography, while Bitcoin developers continue discussing BIP-360 for quantum-resistant addresses.
At the time of reporting, Bitcoin traded near $81,817, down 0.8% in 24 hours, after defending the $81,000 level twice in two days and holding above its 50-day EMA around $80,880. Whale wallets appeared to accumulate, with 40 newly created wallets withdrawing 9,458 BTC, worth about $771.5 million, from market maker Wintermute since October 1. The article noted resistance at $82,100 to $82,850 and $84,900, with a daily close below $80,394 opening the way to the 200-day EMA near $76,200.
Broader market factors included Brent crude at $114 a barrel, the Federal Reserve holding rates at 3.75% to 4.00%, high odds of no cut at the October 28 meeting, and upcoming U.S. midterms on November 3.
