Multisig quorum failure — exchange 2014

Survives

Case description

A Bitcoin startup that implemented a 3-of-5 multisig cold storage arrangement in early 2014 experienced a quorum failure when two key holders simultaneously became unavailable due to a business dispute. Both refused to cooperate in signing transactions. The remaining three key holders could not form a quorum without them, blocking all cold storage access.

Custody context

Stress condition	Multisig quorum failure
Custody system	Exchange custody
Outcome	Survives
Documentation	Unknown
Year observed	2014
Country	Unknown

Structural dependencies observed

Institutional cooperation required

Outcome interpretation

Access remained possible under the reported conditions.

Source

Publicly Reported

Evidence type

Forum post

Evidence link

https://medium.com/@wayne_huang/rsa-2015-panel-bitcoin-s-future-threats-expert-s-roundtable-based-on-150-case-studies-92cc35e68e30

Related cases involving multisig quorum failure

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This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents. Submit a case

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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.