Multisig quorum failure — 3-of-5 multisig (2019)

Survives

Case description

A Bitcoin fund using a 3-of-5 multisig treasury lost access to a quorum when two key holders were arrested in an unrelated regulatory sweep in February 2019. With only three key holders free, and one refusing to cooperate without legal assurances, the fund had exactly a quorum but couldn't use it. The legal dispute froze operations for three months.

Custody context

Stress condition	Multisig quorum failure
Custody system	Mobile or software wallet
Outcome	Survives
Documentation	Unknown
Year observed	2019
Country	Unknown

Structural dependencies observed

Legal process 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.