Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00920
A cryptocurrency fund's 3-of-5 multisig was compromised in June 2021.
BlockedCase description
A cryptocurrency fund's 3-of-5 multisig was compromised in June 2021. One key holder's credentials were phished. The attacker gained control of one key and then socially engineered a second key holder to co-sign a fraudulent redemption request by impersonating the fund manager. With two legitimate signatures plus one compromised, the quorum requirement was met and the transaction executed.
Custody context
| Stress condition | Multisig quorum failure |
| Custody system | Exchange custody |
| Outcome | Blocked |
| Documentation | Unknown |
| Year observed | 2021 |
| Country | Unknown |
Structural dependencies observed
What this illustrates
Access ran through a third-party platform. When that platform became unavailable, so did the Bitcoin. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
Evidence link
Related cases involving multisig quorum failure
77 cases involve multisig quorum failure
512 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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