Multisig quorum failure — institutional custody (2024)

Survives

Case description

A 2024 exchange infrastructure case involved a Bitcoin lending platform that used multisignature cold storage for customer funds with signing keys distributed across geographically separate key custodians. One of the three required signers was a third-party security firm that was acquired in 2024 and underwent a key management transition. During the 10-day transition window, the platform could not execute cold storage withdrawals exceeding its threshold amount because the acquired firm's signing infrastructure was being migrated. Large customer withdrawal requests during this window were delayed by up to five business days while the transition completed.

Custody context

Stress condition	Multisig quorum failure
Custody system	Institutional custody
Outcome	Survives
Documentation	Unknown
Year observed	2024
Country	International

Structural dependencies observed

Multi-party coordinationInstitutional cooperation required

Outcome interpretation

Access remained possible under the reported conditions.

Source

Publicly Reported

Evidence type

News article

Evidence link

https://rewallet.com/blog/bitcoin-core-forgotten-password/

Related cases involving multisig quorum failure

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

← All cases

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.