Multisig vaults on Coinbase

By Coinbase

Product

, March 20, 2018

, 3 min read time

We wanted to give our customers an update about multisig vaults on Coinbase.

Multisig vaults were originally introduced as a way for customers to manage their private keys and control their own security while still using the Coinbase interface. However, as Bitcoin forks become more commonplace, the complexity of multisig vaults makes it infeasible to support multisig withdrawals for each additional forked asset.

Last year, we disabled the creation of new multisig vaults. This was the result of customer feedback and low popularity and usage.

Over the next 30 days, we will be winding down our support for existing multisig vaults on Coinbase. The last day of support will be on April 19, 2018. By removing this functionality, engineering time spent on supporting multisig vaults can be reallocated to continued investment in the security and reliability of our platform, which is of critical importance to our customers.

Because this product is user-controlled, customers can move funds with the two keys they already control. This change will only result in customers not being able to access the third key that Coinbase controls. Customers should ensure they have access to their two keys over the next 30 days. Otherwise, we recommend customers withdraw all funds from a multisig vault prior to April 19, 2018.

After April 19, 2018, access to the multisig address associated with a multisig vault will require the use of 3rd-party software not controlled by Coinbase.

Below are a list of common customer questions related to multisig vaults:

How do I access my multisig vault?

  1. Log in to your Coinbase account at www.coinbase.com. You cannot access your multisig vault using the mobile app.

  2. Navigate to the “Accounts” tab from the top of the screen.

  3. Select your multisig vault from your list of accounts.

  4. Press the “Withdraw” button on your multisig vault.

  5. Select one of your other non-multisig Bitcoin accounts to transfer your funds to, enter in the amount to transfer, and any two factor authentication codes if needed. Then press the “Continue” button.

  6. On the next screen, enter your vault password into the password field, then press the “Approve” button.

  7. Once approved, your withdrawal will enter the 48-hour waiting period before the funds are transferred. There is no way to bypass this waiting period.

What if I don’t know my vault password?

If you don’t know your vault password, you can instead copy/paste the user seed into the password field. This will allow you to approve your withdrawal. The user seed was provided to you when you created your multisig vault.

Where do I find my vault password or user seed?

Your vault password is the phrase you chose when you created your multisig vault. The user seed is a string of numbers/letters that was provided to you during the creation of your multisig vault. You should have stored or saved both of these pieces of information when you created your vault.

What if I forgot/lost my vault password or user seed?

Unfortunately, Coinbase cannot provide or recover your vault password or user seed to your multisig vault. This has always been the case for multisig vaults. The multisig vault specifically puts you in control of your own security, and Coinbase does not have access to your vault credentials. Because the vault cannot be accessed without these credentials, if you have forgotten/lost BOTH the vault password AND the user seed, your vault funds will be inaccessible. We apologize that there is nothing further we can do to help in that case.

What if I use a group multisig vault?

If your multisig vault is a group vault, it requires multiple approvals from different people for each withdrawal. Once you initiate your withdrawal, you should contact the other people who are approvers on your vault and make sure they log in to Coinbase to approve the withdrawal. To see a list of the people who are approvers on your multisig group vault, press the “…” button next to your vault and select “Vault Details.”

What will happen when Coinbase removes the multisig vault from my account list?

Once Coinbase removes multisig vaults from the account list, it will no longer be possible to access funds using the Coinbase interface. However, this open-source multisig tool will remain available and you can use this to withdraw your funds. Please note that the open-source multisig tool does not support group vaults.

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