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New proof tool helps recover quantum-vulnerable Bitcoin but not Satoshi's original coins.

Protocol Fundamentals
19 Jul 2026
Coindesk
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Neutral
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Project Eleven developed a zero-knowledge proof system that can recover Bitcoin locked under BIP-361's freeze on quantum-vulnerable coins by proving ownership through wallet key derivation paths. This method is fast and practical but cannot recover coins mined before 2012, including Satoshi Nakamoto's 1.1 million BTC, because those coins lack the necessary hierarchical key structure. While promising, the system is unaudited, incomplete, and would require blockchain rule changes before use on live coins. This tool shifts the freeze from a permanent loss to a recoverable lock for modern wallets, addressing concerns about Bitcoin's permanent ownership promise after quantum threats.

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