Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01379
The third device had been destroyed in a vehicle fire months before the holder's death.
ConstrainedCase description
A 2025 estate case involved a 2-of-3 multisig where the deceased had held all three keys personally—a configuration that negated the quorum safety benefits because death eliminated access to all keys simultaneously. The estate had letters testamentary and legal authority, but faced the technical problem that no individual key could be located. A forensic specialist identified that the three hardware devices had been stored in different locations across two states, all documented in a letter left with the deceased's attorney. Two devices were recovered and their PINs were documented. The third device had been destroyed in a vehicle fire months before the holder's death. Two keys were sufficient to meet quorum.
Custody context
| Stress condition | Multisig quorum failure |
| Custody system | Hardware wallet (single key) |
| Outcome | Constrained |
| Documentation | Unknown |
| Year observed | 2025 |
| Country | United States |
What this illustrates
The setup required multiple people to sign off. Not enough of them were available. Whether full access was ultimately possible is unclear, but significant delay or outside intervention was involved.
Outcome interpretation
Access remained possible, but only with delay, dependence, or significant difficulty.
Source
Privately Reported
Evidence type
News article
Related cases involving multisig quorum failure
77 cases involve multisig quorum failure
274 cases involve hardware wallet (single key)
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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.