Multisig quorum failure — 2-of-3 multisig (2022)

A crypto investment fund using a 2-of-3 multisignature custody arrangement lost effective access to its Bitcoin holdings in June 2022 when one key holder—a co-founder—left the firm acrimoniously and refused to participate in transactions. Although the fund theoretically needed only two of three signers, the remaining two signers were in different geographic locations with no pre-arranged key ceremony process, and the legal dispute created uncertainty about whether transactions could be executed without the departed partner's knowledge. The funds were effectively frozen pending legal resolution.