AI Weakens Post-Quantum Algorithm Candidate HAWK in 60 Hours

Advances in artificial intelligence (AI) technologies are marking a significant turning point in the world of cryptography. Most recently, Anthropic's AI model, Claude Mythos Preview, identified a serious weakness in HAWK-256, a candidate digital signature algorithm for post-quantum cryptography. This discovery, made in approximately 60 hours of work and at a computing cost of roughly $100,000, exposed a flaw in an algorithm that had undergone two years of expert human review.

Anthropic researchers developed an attack method that halves the effective key strength of HAWK-256. This attack exploits a previously unknown symmetry in the lattice structure underpinning the algorithm's security. HAWK, a candidate under evaluation by the U.S. National Institute of Standards and Technology (NIST), was not yet deployed in any production system. Following Anthropic's disclosure of its findings, the HAWK team announced its withdrawal from NIST's standardization process, acknowledging that the attack rendered HAWK uncompetitive. This development underscores AI's rapidly increasing capabilities in cryptanalysis and the growing complexity of future cybersecurity threats.

This discovery does not directly impact the current Bitcoin (BTC) or Ethereum (ETH) networks, as both cryptocurrencies utilize elliptic curve cryptography rather than HAWK. However, the incident re-emphasizes the critical importance of Bitcoin's long-term preparedness plans against the potential threat of quantum computers. The possibility of quantum computers breaking existing encryption methods raises significant concerns for the future security of digital assets.

As advancements in quantum computing continue unabated, the timelines for the development of cryptographically relevant quantum computers (CRQCs) are accelerating. This situation increases the risk of current encryption algorithms becoming vulnerable to quantum threats. NIST took a crucial step in 2024 by publishing its first post-quantum cryptography standards (ML-KEM, ML-DSA, and SLH-DSA), encouraging organizations to transition to these new standards. AI's ability to analyze and weaken such algorithms accelerates cryptographic research while simultaneously requiring cybersecurity experts to remain vigilant against next-generation threats.

Markets and technology companies are accelerating their preparations for the quantum threat. BTQ Technologies has demonstrated a quantum-safe Bitcoin implementation using NIST-approved ML-DSA. Major cryptocurrency exchanges like Coinbase (COIN) are developing post-quantum custody systems and collaborating with Bitcoin developers on protocol upgrades. Furthermore, financial institutions such as Galaxy Digital are supporting research in this area by launching grant programs of up to $5 million for Bitcoin's quantum resistance efforts. Analysts suggest that such developments will accelerate efforts to strengthen Bitcoin's fundamental security architecture and contribute to the long-term evolution of digital assets towards a more secure future.