Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00494
A Bitcoin custody arrangement for a small foundation used a 2-of-3 multisig.
SurvivesCase description
A Bitcoin custody arrangement for a small foundation used a 2-of-3 multisig. The foundation's accountant, who held one key, was fired following an embezzlement discovery. The foundation immediately sought to remove the ex-accountant's key and rotate to a new key. The ex-accountant refused to cooperate with key rotation unless paid a disputed settlement amount.
Custody context
| Stress condition | Multisig quorum failure |
| Custody system | Exchange custody |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2018 |
| Country | Unknown |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
Related cases involving multisig quorum failure
75 cases involve multisig quorum failure
471 cases involve exchange custody
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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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