Multisig quorum failure — 3-of-5 multisig (2023)

A family holding entity using a 3-of-5 multisignature wallet encountered quorum failure when two key holders died within six months of each other in 2023. The deaths brought the available signers below the 3-of-5 threshold required for transactions. The remaining three key holders could technically reach quorum but could not identify which of multiple hardware devices belonged to the deceased holders—whose seeds had not been transferred to the estate. The family engaged a legal and technical team to reconstruct the quorum structure, a process that took over a year.