Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01148
The minimum threshold for the specific Shamir scheme used was 2-of-3.
BlockedCase description
A 2023 case involved a Bitcoin holder who had set up a complex custody arrangement using Shamir's Secret Sharing across three trusted contacts in 2020. By 2023, one contact had moved countries and was unreachable, and a second had died. Only one of the three fragments remained accessible. The minimum threshold for the specific Shamir scheme used was 2-of-3. With only one fragment available, the entire arrangement was unrecoverable. The case illustrated how Shamir's Secret Sharing—designed to prevent single points of failure—created a different failure mode when the fragment holders themselves were unavailable.
Custody context
| Stress condition | Documentation absent |
| Custody system | Hardware wallet (single key) |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | International |
Structural dependencies observed
What this illustrates
There was only one way in. When that path was gone, so was access. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Privately Reported
Evidence type
News article
Related cases involving documentation absent
193 cases involve documentation absent
274 cases involve hardware wallet (single key)
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This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents.
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Framework references
Where Bitcoin Custody Intersects Legal and Fiduciary Authority
Where custody creates gaps in estate planning, fiduciary duty, and professional responsibility.
Professional Scope Boundary Matrix
What each professional or product covers, what they do not, and where gaps form between them.
The Independent Assessment Layer in Bitcoin Custody
How independent diagnostic layers emerge when multiple parties depend on shared infrastructure.
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