The legal firm dissolved in September 2014.

Survives

Case description

A 2014 Bitcoin escrow startup used a 2-of-3 multisig where the third key was managed by a legal firm acting as arbiter. The legal firm dissolved in September 2014. The dissolution wiped the firm's key storage. With only two keys remaining and no arbiter, disputes in ongoing escrow transactions could not be resolved—the two transacting parties could collude but could not force resolution without the arbiter.

Custody context

Stress condition	Multisig quorum failure
Custody system	Mobile or software wallet
Outcome	Survives
Documentation	Unknown
Year observed	2014
Country	Unknown

Structural dependencies observed

Single point of failureThird-party platform dependency

Outcome interpretation

Access remained possible under the reported conditions.

Source

Publicly Reported

Evidence type

Forum post

Evidence link

https://medium.com/@wayne_huang/rsa-2015-panel-bitcoin-s-future-threats-expert-s-roundtable-based-on-150-case-studies-92cc35e68e30

Related cases involving multisig quorum failure

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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

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.