Multisig quorum failure — software wallet (2019)

Survives

Case description

A January 2019 case describes a venture fund's 3-of-5 Bitcoin multisig treasury where two key holders left the fund in a contentious departure. The departed key holders took their hardware devices containing their keys and refused to return them or cooperate with key rotation. The remaining three key holders had a quorum but the fund's legal advisors recommended against using it without first obtaining a court order confirming the ex-employees had no claim.

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

Institutional cooperation requiredLegal process 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.