Scenario #14
THE MULTISIG CHALLENGE
Trust Breakdown Protocol
The email arrives from your business partner Sam: "I've decided to take some time off the grid. Won't be reachable for several weeks. Don't worry about any pending transactions. -S"
Something feels off. The timing is suspicious, just hours after you both had discussed a major transfer from your shared multisignature wallet. You try calling, but it goes straight to voicemail.
MULTISIG STATUS: PARTNER UNRESPONSIVE
As the day progresses, concerning details emerge. A mutual contact mentions seeing Sam urgently packing for an unannounced trip. Another reports an unusual meeting Sam had with a competitor. Your lawyer calls about irregularities in some recent paperwork.
You've jointly controlled significant crypto assets in a 2-of-3 multisignature wallet. You, Sam, and a third trusted partner each hold one key, with any two required to authorize transactions. The majority of your business operating funds are secured this way.
Your Situation
You assess the multisig arrangement quickly:
- You control one key to the multisig wallet
- Sam controls another key and is now unresponsive
- The third key is held by a trusted partner who is currently traveling in a different time zone
- A scheduled vendor payment of 4.5 BTC is due in 36 hours from the multisig wallet
- Recent blockchain activity shows Sam's key was used to propose a different, unplanned transaction to an unknown address
- Your key is required to approve this unexpected transaction
- Sam's regular devices appear to be offline
Immediate Assessment
Trust Challenge: Multisig Management
- What verification protocols did you establish for unusual multisig requests?
- What contingency plans exist for unresponsive signers?
- How do you verify if Sam's key has been compromised?
- What governance rules did you establish for your multisig setup?
- How will you handle the legitimate pending payment without Sam?
Complications
As you grapple with the situation:
- The third key holder can't be reached immediately due to time zone differences
- The unusual transaction proposed by Sam's key is for a significant amount
- Your business agreement has no clear provisions for suspected key compromise
- The unknown receiving address has links to a mixer service
- The vendor expecting payment in 36 hours is crucial to your operations
- You receive a text from an unknown number claiming to be Sam with instructions to approve the transaction
Your Mission
Protect your multisignature wallet from potential compromise while maintaining business operations. You must determine if Sam's key has been compromised, prevent unauthorized transfers, and ensure legitimate business transactions can still proceed.
How robust is your multisignature governance when trust breaks down?
Your phone buzzes with a message from the third key holder: "Just landed, saw your urgent messages. What's going on with Sam? And what's this transaction I'm seeing on the blockchain explorer?"
DECISION REQUIRED: Multisig Response Strategy
How will your multisig contingency plan function when a partner becomes unresponsive or potentially compromised?