Breaking Down AI’s Threat to Cryptography /w Kostas Chalkias

Summary

The Block hosts Mysten Labs co-founder Kostas Chalkias to discuss AI's threat to cryptography and crypto security. He argues AI is now a larger security threat than quantum computing and requires continuous audits and AI-native red teams. The conversation covers the Coldcard incident, hardware wallets, multisig, Walrus as a decentralized AI data portability layer, and Sui's security and privacy positioning.

• The market briefing notes Bitcoin near $80,000 and Ether outperforming, citing Treasury buybacks and ETF inflows.
• Kostas says AI gives attackers scale and makes continuous security audits essential.
• The Coldcard hack shows old code must be re-audited with new frontier models.
• He recommends hardware wallets plus multisig and views open-source versus closed-source security as nuanced.
• Walrus is positioned for AI data portability and decentralized memory across LLMs.
• Sui is moving toward agentic and privacy-sensitive use cases.
• Sam Blackshear's move to Anthropic is framed as opening crypto-to-AI security collaboration.