> ## Documentation Index
> Fetch the complete documentation index at: https://v2.docs.conduit.financial/llms.txt
> Use this file to discover all available pages before exploring further.

# CRYPTO_WALLET_MISCONFIGURED error

> A non-custodial wallet is missing required custody configuration and the payout could not be signed

## What happened

The source wallet is missing required custody configuration -- for example, the non-custodial wallet has no signing organization or suborganization set up. The payout could not be initiated and is in a terminal failed state with `failureCode: crypto_wallet_misconfigured`.

```json theme={null}
{
  "type": "CRYPTO_WALLET_MISCONFIGURED",
  "title": "Wallet custody configuration error",
  "status": 422,
  "detail": "The source wallet is missing required custody configuration.",
  "resolution": "Check the wallet's custody setup in your dashboard. If the wallet was recently created or converted, ensure the custody activation step completed successfully.",
  "docs": "/errors#crypto-wallet-misconfigured",
  "instance": "/v2/transactions/txn_abc123",
  "correlationId": "corr_xyz789",
  "timestamp": "2026-01-15T09:30:00.000Z"
}
```

## Common causes

* **Incomplete custody activation** -- a non-custodial wallet application was approved but the custody activation step did not complete successfully

## Recovery

<Warning>
  This is a terminal state. No funds were moved. The original transaction cannot
  be recovered; you must resolve the wallet configuration before submitting a
  new transaction.
</Warning>

**1. Confirm the terminal state**

```bash theme={null}
curl -X GET https://api.conduit.financial/v2/transactions/txn_abc123 \
  -H "x-api-key: YOUR_API_KEY"
```

The response will show `status: "failed"` and `failureCode: "crypto_wallet_misconfigured"`.

**2. Check the wallet status**

```bash theme={null}
curl -X GET https://api.conduit.financial/v2/customers/{{customerId}}/wallets/{{walletId}} \
  -H "x-api-key: YOUR_API_KEY"
```

Inspect the `status` field. An `active` wallet should have complete custody configuration. If the wallet is in a non-`active` status, investigate the application or conversion flow.

**3. Contact support if the wallet appears active**

If the wallet status is `active` but payouts still fail with this code, contact support with the wallet ID and transaction ID. The custody configuration may need to be repaired by the Conduit team.

## Prevention

* **Wait for wallet activation** -- do not submit payouts against a wallet until its status is `active` and any pending applications or conversions have completed
* **Handle `transaction.failed` with this code** -- branch on `failureCode === 'crypto_wallet_misconfigured'` to surface a "wallet setup incomplete" message and direct the customer to complete the activation flow

## Related webhooks

The `transaction.failed` event fires when the misconfiguration is detected:

```json theme={null}
{
  "type": "transaction.failed",
  "data": {
    "transactionId": "txn_abc123",
    "failureCode": "crypto_wallet_misconfigured"
  }
}
```

## Related endpoints

* [GET /v2/transactions/:id](/api-reference/transactions/get-a-transaction-by-id) -- read transaction state
* [GET /v2/customers/:customerId/wallets/:walletId](/concepts/crypto-wallets#reading-wallets) -- read wallet status