Bitcoin user Callum McArthur’s house was broken into last month, and the burglars stole his hardware wallet and recovery words which stored his bitcoin stack.
“Otherwise you’re generally talking about 10 to 15 years of your hard labor…and the possibility of that all being gone…you’re not getting those years back.
McArthur used a 2-of-3 multisig service from Casa, a bitcoin services company, in which he held the majority of the keys and had Casa function as a backup provider.
Despite protecting against burglaries, multisigs and physical separation of keys are essential to protect against another attack vector — $5 wrench attacks.