Coldcard Breach Spurs Mysten Labs Cryptographer To Build Sub-$10 Quantum Hardware Wallets At Scale
In Brief
Mysten Labs co-founder leases factory to mass-produce quantum-resistant Sui wallet cards under $10, building on protocol-level NIST-approved upgrades.
Kostas Chalkias, co-founder and chief cryptographer of Mysten Labs, has revealed plans to mass-produce an affordable quantum-resistant hardware wallet for the Sui blockchain. In a personal initiative undertaken outside his corporate role, Chalkias has leased a dedicated factory to manufacture the Quantum 2FA Sui card, targeting a retail price below $10 and an NFC quantum signature time of one to two seconds.
The announcement arrives amid heightened concerns over hardware wallet security following a major breach affecting Coldcard, one of the industry’s most established devices. In late July, manufacturer Coinkite disclosed that a firmware flaw dating to a 2021 update had bypassed the device’s dedicated hardware randomness chip during key generation, replacing it with a predictable software-based process tied in some cases to device serial numbers. Attackers began draining funds on July 30, with losses climbing in waves to approximately 2,055 BTC—worth close to $130 million—from more than 7,700 addresses. According to Galaxy Research head Alex Thorn, at least 15 distinct attackers were actively exploiting the remaining vulnerable wallets.
Chalkias explicitly tied his manufacturing push to this broader vulnerability landscape. “What happened to Coldcard will NEVER happen to my people,” he wrote, adding that “crypto users shouldn’t be the victims.” He indicated that the cards might be sponsored for users unable to afford them, stating that “everyone deserves top-tier protection hygiene.” Although the Coldcard incident stemmed from compromised randomness rather than quantum computing, it illustrated how hardware wallets that fail at the cryptographic level can become silent attack vectors—precisely the threat Chalkias aims to neutralize.
Sui Protocol Prepares Native Post-Quantum Infrastructure
The wallet project builds upon work already underway at the Sui protocol level. The Layer 1 blockchain has announced plans to integrate two post-quantum signature schemes approved by the National Institute of Standards and Technology (NIST): ML-DSA-65 will serve as a native protocol signature for everyday accounts, while the hash-based SLH-DSA-SHA2-128s will be implemented within Move smart contracts to protect high-value vaults.
A central architectural advantage is Sui’s deterministic key derivation. Because existing keys are generated from a seed, users will be able to rotate to quantum-safe keys using their current recovery phrases without creating new accounts or transferring assets elsewhere. Sui’s live address alias feature further allows existing accounts to update authorization keys directly, eliminating the need for disruptive migrations.
The network is targeting mainnet deployment of quantum-safe vaults this year, with native ML-DSA-65 accounts expected on testnet by year-end and mainnet authentication scheduled for the first quarter of 2027. Chalkias has cited Sui’s ability to swap in new authentication methods without a hard fork as a structural advantage over competing chains. These timelines remain provisional pending independent audits and testnet feedback.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
