Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01113
Multisig quorum failure — 2-of-3 multisig (2023)
IndeterminateCase description
A corporate treasury that had held Bitcoin in a 2-of-3 multisignature arrangement since 2021 encountered quorum failure in 2023 when one key holder—a board member—resigned and declined to participate in further transactions. The remaining two key holders constituted quorum and could theoretically transact, but the resigned member held their key on a hardware device they had kept and refused to transfer. Legal proceedings were required to compel return of the key or obtain a court order recognizing the other two signers as sufficient.
Custody context
| Stress condition | Multisig quorum failure |
| Custody system | Institutional custody |
| Outcome | Indeterminate |
| Documentation | Unknown |
| Year observed | 2023 |
| Country | International |
Structural dependencies observed
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
Publicly Reported
Evidence type
News article
Related cases involving multisig quorum failure
77 cases involve multisig quorum failure
10 cases involve institutional 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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