Josh Mandell Claims Quantum Computing Is Draining Dormant Bitcoin Wallets

Former Wall Street trader Josh Mandell has sparked heated debate in the crypto community after claiming that quantum computing is already being used to steal Bitcoin from long-dormant wallets. Mandell, who previously worked at Salomon Brothers and Caxton Associates, alleges that a “large player” is quietly exploiting the technology to accumulate BTC without buying on the open market.

According to Mandell, wallets belonging to “deceased” or inactive holders are being drained in a way that avoids triggering major alerts. He suggests that the only obstacle to such operations is blockchain analysis, which could potentially expose suspicious transaction patterns.

Mandell’s reputation for making accurate market calls earlier this year has added weight to his claims, fueling speculation and concern among Bitcoin investors. However, the crypto industry has pushed back strongly against his allegations. Harry Beckwith, founder of Hot Pixel Group, dismissed the claims outright, stating that there is “literally no chance this is currently happening.” Similarly, Matthew Pines, executive director at the Bitcoin Policy Institute, argued that Mandell’s assumption is “false” and unsupported by evidence.

Quantum computing has long been discussed as a future threat to Bitcoin security, as it could theoretically break traditional cryptography protecting private keys. Yet most experts believe the technology is still years away from reaching such capabilities, and the industry continues to develop quantum-resistant solutions.

While Mandell’s statements have reignited fears about the security of old BTC wallets, no verifiable proof has surfaced. For now, the claims remain speculative, leaving the debate open between early warnings of a looming quantum risk and the firm stance of industry experts who see such fears as premature.