Multisig quorum failure — exchange custody (2020)

Survives

Case description

OKEx's five-week withdrawal suspension from October 2020 was caused by a key holder being detained by Chinese police. The exchange used a multi-party authorisation system for cold wallet transactions and the detained individual was one of the required signatories. With only the remaining key holders available, the exchange could not meet the required threshold for cold wallet withdrawals.

Custody context

Stress condition	Multisig quorum failure
Custody system	Exchange custody
Outcome	Survives
Documentation	Unknown
Year observed	2020
Country	Malta

Structural dependencies observed

Legal process requiredSingle point of failure

Outcome interpretation

Access remained possible under the reported conditions.

Source

Publicly Reported

Evidence type

News article

Evidence link

https://masterthecrypto.com/bitcoin-scams/

Related cases involving multisig quorum failure

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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.