Part of the CustodyStress archive of observed Bitcoin custody incidents
Multisig quorum failure
Cases in this category involve multisig arrangements where the required number of signers was not available to authorize a transaction.
Multisig quorum failures arise when the signing threshold cannot be reached due to key holder unavailability, not due to key loss. Cases span personal inheritance setups, corporate treasury arrangements, and protocol-level governance structures. The common pattern is a quorum requirement designed for security that becomes a coordination barrier when key holders are unavailable, unresponsive, or in dispute.
77 observed cases
Blocked
5 (6%)
Constrained
7 (9%)
Survives
56 (73%)
Indeterminate
9 (12%)
Multisig quorum failure — software wallet 2021
Mobile or software wallet
A Bitcoin investment collective using a 3-of-5 multisig faced a quorum crisis in March 2021 when two key holders dissolved their partnership under acrimonious c
Multisig quorum failure — 2-of-3 multisig (2020)
Mobile or software wallet
A Bitcoin inheritance structure using a 2-of-3 multisig was challenged in court in June 2020. One key holder claimed they had been coerced into the original arr
Device stolen — 3-of-5 multisig (2020)
Mobile or software wallet
A September 2020 case describes a DAO treasury in a 3-of-5 multisig where one key holder's signing device was stolen and a second key holder was unreachable fol
Multisig quorum failure — exchange custody (2020)
Exchange custody
OKEx's five-week withdrawal suspension from October 2020 was caused by a key holder being detained by Chinese police. The exchange used a multi-party authorisat
Multisig quorum failure — 2-of-3 multisig (2020)
Exchange custody
A December 2020 case describes a Bitcoin investment club with a 2-of-3 multisig where all three key holders were resident in different countries. An internation
With both ill, the quorum was unreachable for 5 weeks.
Mobile or software wallet
A Bitcoin startup's 2-of-3 multisig treasury was rendered inaccessible in March 2020 when two of three key holders were simultaneously hospitalised with COVID-1
During COVID lockdowns, one key holder relocated to a country without internet access.
Mobile or software wallet
A Bitcoin savings cooperative's treasury was held in a 3-of-5 multisig. During COVID lockdowns, one key holder relocated to a country without internet access. A
An August 2019 case describes a family Bitcoin trust using a 2-of-3 multisig.
Exchange custody
An August 2019 case describes a family Bitcoin trust using a 2-of-3 multisig. One key holder was the family patriarch who died. The trust's lawyers had not incl
The trustee company was acquired by a bank in July 2019.
Exchange custody
A Bitcoin inheritance structure used a 2-of-3 multisig where the three key holders were a trustee company, the grantor, and a child. The trustee company was acq
The attacker could not unilaterally spend but could block key rotation, leaving
Mobile or software wallet
An October 2019 forum case describes a Bitcoin DAO whose treasury multisig used smart contract-based key recovery. A Solidity vulnerability in the recovery cont
Multisig quorum failure — software wallet (2019)
Mobile or software wallet
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
Multisig quorum failure — 3-of-5 multisig (2019)
Mobile or software wallet
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. Wi
Multisig quorum failure — 2-of-3 multisig (2019)
Mobile or software wallet
A cryptocurrency startup's 2-of-3 multisig treasury failed in May 2019 when the startup's CTO, who held one key, refused to cooperate after a contractual disput
Multisig quorum failure — 2-of-3 multisig (2019)
Exchange custody
A June 2019 case describes a 2-of-3 multisig Bitcoin custody arrangement for a small family office where one key holder's spouse died and the key holder entered
Multisig quorum failure — 2-of-3 multisig (2019)
Mobile or software wallet
A November 2019 forum case describes a three-person Bitcoin partnership in a 2-of-3 multisig. One partner's signing device was destroyed in a natural disaster.
Multisig quorum failure — 2-of-3 multisig (2018)
Exchange custody
A Bitcoin family trust structured as a 2-of-3 multisig had one key lost when the key holder's home was destroyed in a fire. The surviving two key holders could
Multisig quorum failure — exchange custody (2018)
Exchange custody
A June 2018 case describes a DAO-structured investment vehicle whose Bitcoin treasury required token holder votes to release funds. During a governance attack,
Multisig quorum failure — 3-of-5 multisig (2018)
Mobile or software wallet
A September 2018 case describes a corporate Bitcoin treasury in a 3-of-5 multisig where three key holders were arrested simultaneously in an unrelated regulator
Multisig quorum failure — software wallet (2018)
Mobile or software wallet
An October 2018 forum case describes a DAO-style investment club whose Bitcoin treasury was held in a multisig controlled by token votes. A software bug in the
Two key holders resigned in January 2018 following a major investor disagreement.
Mobile or software wallet
A cryptocurrency startup's treasury was held in a 3-of-5 multisig. Two key holders resigned in January 2018 following a major investor disagreement. The resigni
A Bitcoin custody arrangement for a small foundation used a 2-of-3 multisig.
Exchange custody
A Bitcoin custody arrangement for a small foundation used a 2-of-3 multisig. The foundation's accountant, who held one key, was fired following an embezzlement
Multisig quorum failure — software wallet (2018)
Mobile or software wallet
A February 2018 case describes a crypto fund's 2-of-3 treasury multisig that failed when a key holder was detained abroad. The remaining two key holders could s
The treasury was frozen for six weeks.
Mobile or software wallet
A Bitcoin charitable foundation that held its treasury in a 3-of-5 board multisig had two key holders resign in protest over governance issues in November 2017.
The independent third party relocated internationally in September 2017 and their
Exchange custody
A Bitcoin family trust used a 2-of-3 multisig where the three key holders were the trustee, the grantor, and an independent third party. The independent third p
One key was on a hardware wallet that failed in August 2017.
Mobile or software wallet
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 wa
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