Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-01233
Multisig quorum failure — 3-of-5 multisig (2024)
SurvivesCase description
A 2024 institutional Bitcoin custody case involved a family office that had established a 3-of-5 multisignature arrangement using a custody service. One of the five keys was held by the custody service itself. The custody service was acquired by a larger entity in 2024, and during the transition, the custody service's key management infrastructure was migrated to a new system. The migration created a two-week period during which the custody service could not produce a valid signature in a timely manner. The family office's Bitcoin was technically accessible but the signing workflow was broken during the transition, delaying a planned large transaction.
Custody context
| Stress condition | Multisig quorum failure |
| Custody system | Institutional custody |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2024 |
| Country | International |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
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.