One key was on a hardware wallet that failed in August 2017.

Survives

Case description

A Bitcoin startup held its operating treasury in a 2-of-3 Electrum multisig. One key was on a hardware wallet that failed in August 2017. A second key holder was travelling internationally and their device was detained at a border crossing. The company could not make payroll for two weeks while one key was replaced and the second recovered.

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

Hardware device requiredInstitutional cooperation required

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

77 cases involve multisig quorum failure 572 cases involve mobile or software wallet 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

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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.