CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01069

The attorney died unexpectedly, leaving the family with access to only two of three

Indeterminate
Case description
A family-run Bitcoin holding entity had established a 2-of-3 multisignature wallet with keys held by two brothers and a family attorney. In April 2022, the attorney died unexpectedly, leaving the family with access to only two of three keys—still above quorum. However, one of the brothers had stored his key on a hardware device that had been lost. The family was left with one confirmed key and one potentially-recoverable device, below the 2-of-3 quorum required for any transaction. Recovery required locating the lost device or obtaining a court order to modify the quorum requirement—neither of which was straightforward.
Custody context
Stress conditionMultisig quorum failure
Custody systemInstitutional custody
OutcomeIndeterminate
DocumentationUnknown
Year observed2022
CountryInternational
Structural dependencies observed
Multi-party coordination
What this illustrates
Recovery needed multiple people to act together — and getting everyone to coordinate wasn't possible. It's not clear whether anyone ever regained access.
Outcome interpretation
Not enough information is available to determine the outcome.
Source
Privately Reported
Evidence type
News article
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77 cases involve multisig quorum failure 10 cases involve institutional custody View archive statistics →
This archive documents observed custody survivability failures. It does not attempt to document all Bitcoin losses or security incidents. Submit a case
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.
Original text
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