The $100B Fragility: Multisig Wallets' Hidden Vulnerability
Multisig wallets currently secure approximately $100 billion in crypto assets, serving as the foundation for protocol operations and treasury management across the industry.
**The Critical Weakness**
Despite their security benefits, multisigs face a rarely discussed vulnerability: permanent fund lockout. If enough signers lose access to their keys—through hardware destruction, forgotten PINs, or disappearance—the funds become irretrievable forever.
**How Multisigs Work**
- Require multiple signatures to authorize transactions (e.g., 2-of-3)
- Eliminate single points of failure
- Popular implementations include [Gnosis Safe](https://safe.global) and Argent
- Compatible across Ethereum and EVM chains
**Who Uses Them**
Multisig wallets aren't exclusive to large organizations. They're increasingly adopted by:
- DAOs and protocol teams
- Investment funds
- Individual users seeking enhanced security
While multisigs provide superior security compared to single-owner wallets, teams must implement robust key management and recovery procedures to prevent catastrophic loss of access to treasury funds.