Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00889
One key holder was hospitalised and a second was unreachable following a personal
SurvivesCase description
A Bitcoin startup used a 2-of-3 multisig. In February 2021, one key holder was hospitalised and a second was unreachable following a personal emergency. The third key holder alone could not reach quorum. The startup could not execute payroll or vendor payments for three weeks.
Custody context
| Stress condition | Multisig quorum failure |
| Custody system | Mobile or software wallet |
| Outcome | Survives |
| Documentation | Unknown |
| Year observed | 2021 |
| 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.
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