Further to our earlier notices regarding the issue in which unauthorized asset transfers were confirmed in the DCENT App Wallet (software wallet) of some users, we would like to share what has been confirmed since and the status of our response to date. We offer our apologies to those users who have experienced anxiety and inconvenience.
Distinguishing the App Wallet from hardware wallets
Separately from hardware wallets such as the Biometric Wallet, DCENT S and DCENT X, the DCENT app provides an App Wallet (software wallet) function, which allows a wallet to be created and managed directly on a smartphone and transactions to be approved there. The App Wallet referred to in this notice means this function.
If you have used only a hardware wallet, without ever creating a wallet directly on your smartphone or entering a recovery phrase to use it, you are not within the scope of impact of the unauthorized asset transfers reported to us to date.
Regarding hardware wallets
We have received many inquiries as to whether hardware wallets are affected, so we would like to explain. This issue does not affect the hardware wallet devices themselves.
Hardware wallets and the App Wallet have separate processing paths for key generation and transaction signing. A hardware wallet generates random numbers using functions provided by the Secure Element mounted in the device, and is implemented so that transaction signing is also performed inside the Secure Element. The Biometric Wallet and DCENT S are structured to use the random number generation functions provided by the Secure Element's Java Card environment.
Within the scope of what has been confirmed to date, the unauthorized asset transfers reported in this case are a phenomenon reported in the DCENT App Wallet, and no circumstances have been confirmed in relation to any compromise of the hardware wallet devices themselves, such as the Biometric Wallet, DCENT S or DCENT X. In addition, our investigation to date has confirmed no circumstances relating to forgery or alteration of the distributed app build, intrusion into company servers, malware infection, or direct theft or leakage of recovery phrases (mnemonics), app PINs or passwords. DCENT does not store users' recovery phrases or private keys and has no means of knowing them.
The cause is under investigation. We consider it inappropriate to communicate matters that have not been confirmed while the investigation is in progress, and we also do not disclose technical details that could be misused. We will provide information through our official channels as matters are confirmed.
Status of asset tracing and freeze cooperation requests
We have continued asset tracing and cooperation with the relevant organizations since our last notice. We share the current status within the scope that will not affect the ongoing tracing and investigation.
- Monitoring of related addresses — Addresses that appear to be related have been registered in a monitoring system, and subsequent movements of funds are being observed.
- Joint response with an external specialist team — We are analyzing the flow of funds together with an external team specializing in on-chain analysis.
- Freeze and withdrawal restriction requests — We are requesting that the relevant exchanges, swap services and token issuers freeze the funds concerned and restrict withdrawals from the related accounts.
- Cooperation with law enforcement — We provide relevant materials to law enforcement authorities and are cooperating with the follow-up procedures required by those operators.
- Sharing of related addresses — We are sharing related addresses with block explorer operators and partners to support responses to laundering and further movement of funds.
A number of freeze cooperation requests have been made. However, actual freezing and recovery of assets depend on the measures and follow-up procedures of the relevant operators and organizations, and a cooperation request alone does not guarantee a freeze or recovery. We will continue to monitor progress.
External security evaluation of hardware wallets
Separately from our internal review, security evaluations of our hardware wallet products by external specialist organizations — source code review of major security functions, and penetration testing — are being conducted in stages. We will provide updates on progress through our official channels.
Guidance for App Wallet users
As previously advised, please update the app to the latest version and, for any assets remaining in the App Wallet, do not reuse your existing recovery phrase; instead, move them to a wallet created with a new recovery phrase. Even if you update the app, a wallet created from the existing recovery phrase retains its previous signing history, so moving your assets must be done separately. Please refer to the official guidance below for detailed instructions.
- Guidance on moving your assets (English): https://store.dcentwallet.com/blogs/post/how-to-move-assets-from-dcent-app-wallet
- Guidance on moving your assets (Korean): https://store-kr.dcentwallet.com/blogs/post/how-to-move-assets-from-dcent-app-wallet
If you have previously entered or imported a hardware wallet's recovery phrase into the App Wallet to approve transactions, please also create a wallet with a new recovery phrase for the assets managed under that same recovery phrase, and move all existing assets across. If you have used only a hardware wallet and have never used its recovery phrase in the App Wallet, no separate move is required.
Beware of impersonation
DCENT does not operate official messenger channels such as Telegram or Discord. Please take care never to enter your recovery phrase, wallet key or PIN into any account or channel that exploits this issue by impersonating asset recovery or support services. You should not provide them even if a support representative or a third party requests them, and please trust only the official channels below.
- Official website: https://www.dcentwallet.com/
- Official X (English): https://x.com/DCENTWALLETS
- Official X (Korean): https://x.com/DCENTWALLETS_KR
- Official YouTube: https://www.youtube.com/@DCENTWallet
- Official LinkedIn: https://www.linkedin.com/company/dcentwallet/
- Official GitHub: https://github.com/DcentWallet
- Support Center: https://support.dcentwallet.com/
- Official blog: https://store.dcentwallet.com/blogs/post
DCENT is monitoring and reporting impersonation accounts that cause secondary harm. If you find an impersonation account, please report it.
We once again offer our apologies to those users who have experienced anxiety and inconvenience, and we will continue our response toward user support and the tracing and freezing of assets.
The DCENT Team
