Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00397
The attorney retired suddenly in November 2016 and transferred their practice.
SurvivesCase description
A Bitcoin escrow arrangement for a business acquisition used a 2-of-3 multisig. One key was held by the buyer, one by the seller, and one by an escrow attorney. The attorney retired suddenly in November 2016 and transferred their practice. The successor attorney was not familiar with Bitcoin and refused to serve as key holder. The acquisition was delayed for two months while a new key holder was arranged.
Custody context
| Stress condition | Multisig quorum failure |
| Custody system | Mobile or software wallet |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2016 |
| Country | Unknown |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
Related cases involving multisig quorum failure
77 cases involve multisig quorum failure
572 cases involve mobile or software wallet
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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.