Helius CEO Warns Crypto Faces 'Straw House' Collapse as AI Raises Security Stakes

According to Helius Labs CEO Mert Mumtaz, the crypto industry is entering a critical security era where AI, formal verification, and higher software standards will separate robust infrastructure from fragile protocols. In a widely viewed X post on June 10, Mumtaz argued that most crypto systems have adopted internet software development practices while handling the risk profile of aerospace or spaceflight, creating dangerous misalignment.

Mumtaz framed AI not only as a threat vector but as a tool that will make rigorous security practices more accessible at scale. However, the same AI capabilities enabling faster audits could accelerate bug discovery by malicious actors analyzing public smart contracts. As Anthropic released Claude Fable 5 and Claude Mythos 5 on June 9—its most capable general models with enhanced reasoning abilities—the timing underscores how rapidly AI is advancing into security research. Mumtaz concluded that "the serious teams will emerge stronger than ever, while straw houses will collapse," predicting an aggressive natural selection mechanism may continue for years as security expectations rise.