Employee Offboarding: Safely Revoking Key Access
The Executive Verdict
Introduction: The "Ghost" in the Machine
In Web2, disabling email works. In Web3, access is based on possession of a secret. If Bob knows the seed phrase, he can access funds forever. You cannot "un-know" a seed.
1. Scenario A: The Nightmare (Shared Seed Phrases)
If you share a Ledger: STOP. Secure assets before the meeting. Procedure: 1. Create clean wallet. 2. Sweep 100% of assets. 3. Gas Check (leave enough ETH for fees). 4. Abandon old wallet.
2. Scenario B: The Standard (Multi-Sig / MPC)
Multi-Sig: 1. Identify signer (0xBob). 2. Remaining signers propose removal. 3. Execute on-chain. MPC: 1. Admin logs in. 2. Revoke user. 3. Server kills key shard.
A Split Screen. Left: "The Sweep" showing money moving from Box A to Box B. Right: "The Rotation" showing the Lock changing on Box A, but money staying inside.
3. The "Shadow Access" Checklist
4. HR & Legal Coordination (The Paper Layer)
Tech solves access, Law solves liability. Offboarding agreement must include a "Digital Asset Attestation" confirming destruction of all keys/passwords.
5. Emergency Protocol: The "Hostile Offboarding"
If theft is suspected: Front-Run Them. Move funds to Cold Storage BEFORE the meeting. Trigger "Pause" on smart contracts if available.
Conclusion: You Are Not Firing a User; You Are Rotating a Key
Every former employee with a retained seed phrase is a "Silent Risk." Treat key revocation like changing physical locks.
Offboarding Incident Response Checklist
F.A.Q // Logical Clarification
Can I just ask them to delete the seed?
"No. "Trust but Verify." You cannot verify deletion. You must assume they have it."
Does rotating a signer cost gas?
"Yes ($20-$50). Small price for security."
What if they refuse to sign?
"In 2-of-3, you don't need them. In 2-of-2, you are stuck. Always use 2-of-3."
What about vesting tokens?
"Use smart contract "Clawback" or stop the stream. Don't rely on manual return."
Module ActionsCW-MA-2026
Institutional Context
"This module has been cross-referenced with Operations & Security / HR & Risk standards for maximum operational reliability."