CustodyStress
Archive › Multisig quorum failure
Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00179

The remaining two shareholders could form quorum, but the departed CTO had configured

Survives
Case description
A Bitcoin startup that held company treasury in a 2-of-3 multisig discovered that one of its three key holders—a former CTO who had departed acrimoniously—refused to participate in any future signing ceremonies. The remaining two shareholders could form quorum, but the departed CTO had configured their key on hardware that could not be accessed without a PIN only they knew.
Custody context
Stress conditionMultisig quorum failure
Custody systemExchange custody
OutcomeSurvives
DocumentationUnknown
Year observed2014
CountryUnknown
Structural dependencies observed
Single point of failureInstitutional cooperation required
Outcome interpretation
Access remained possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
Original text
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