Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00496
Two admins resigned simultaneously following a governance dispute, leaving only three
SurvivesCase description
A Bitcoin community project used a 3-of-5 multisig treasury managed by five volunteer administrators across five countries. In March 2017 two admins resigned simultaneously following a governance dispute, leaving only three active admins. While technically still a quorum, the remaining three refused to spend funds without reconstituting the full five-person group. The treasury was effectively frozen for four months.
Custody context
| Stress condition | Multisig quorum failure |
| Custody system | Mobile or software wallet |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2017 |
| Country | Unknown |
Structural dependencies observed
Outcome interpretation
Access remained possible under the reported conditions.
Source
Publicly Reported
Evidence type
Forum post
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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.
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