Status Report on Unauthorized Asset Transfers in the App Wallet

Status Report on Unauthorized Asset Transfers in the App Wallet

Authors

DCENT Wallet Team

Beyond Storage

DCENT Wallet Team

As of September 17, 2026 (KST)

This report is based on the facts confirmed and the response carried out as of September 17, 2026.

We are working with law enforcement authorities, security specialists, the operators and developers of the relevant mainnets, and exchanges to identify and trace the flow of funds related to the unauthorized asset transfers and to seek the freezing of those funds. Whether and when assets can be frozen or recovered depends on actions by authorities and third parties and on the outcome of the investigation.

In parallel, we are carrying out a technical analysis to establish how this issue arose and the potential scope of impact. What has been confirmed to date, together with the potentially affected scope and the actions needed to protect users, is being communicated separately.

However, if specific technical information were made public, it could be used in identical or similar attacks or lead to further harm. To prevent that, we are not disclosing at this time technical details that could affect the investigation or the security response.

If additional facts are confirmed, we will share them through our official channels to the extent that disclosure is possible, taking into account the investigation, the security response, and the protection of users.


01Scope of potential impact

Cases with potential impact

Based on our technical analysis to date, the main potential impact criteria are as follows. The criteria and the scope of affected addresses may change as the analysis is supplemented and as chain-specific characteristics and further findings are confirmed. Irregular transactions were first observed on Android, but the same potential impact applies to iOS.

Criterion Details
1. Wallet type An address whose recovery phrase has at some point been entered into the App Wallet (software wallet). This includes wallets created in the App Wallet, hardware wallet recovery phrases restored into the App Wallet, and App Wallet recovery phrases moved to a hardware wallet.
2. Signing history The address has a history of sending (signing). This covers not only coin transfers but also token and NFT transfers, token approvals, and transactions made after connecting to a dApp. For addresses that have only received, the potential impact related to the reported issue is comparatively lower, but this does not mean all risk is excluded.
3. App version The signing took place in an app version earlier than 8.1.0 (released 2025-11-05). What matters is the version at the time of signing, not the version currently installed. This may apply even after that release date if the app was not updated.
4. Chain Bitcoin, Ethereum, XRPL, TRON, EVM-based chains, and others.

Easy to overlook

  • Tokens such as USDT on ERC20 or TRC20 use the same wallet key. Even if you have never sent the native coin, check for potential impact if you have sent tokens or NFTs on that chain.
  • On EVM-based chains, an address derived from the same key can be used across multiple chains. If potential impact is confirmed on one chain, we recommend checking assets held at the same address on other EVM chains such as BSC, Polygon, Base, and Arbitrum, and moving them as well.
  • There is an exception for hardware wallets. If that recovery phrase has at some point been entered into the App Wallet, check for potential impact.

The full list of chains with potential impact, and how to determine whether your wallet is affected, are set out in How to check whether this applies to you.


02Timeline

All times are Korea Standard Time (KST).

Time Details
Sept 16, 2026, early morning (KST)
  • First report of an unauthorized asset transfer received by customer support
Sept 16, 2026, morning (KST)
  • Focused on identifying the cause by analyzing the reports received by customer support
  • Most of the users who filed reports were classified as App Wallet users
Sept 16, 2026, afternoon (KST)
  • Published an urgent notice on the official X (Twitter) channels (Korean and English)
  • Published an in-app notice
  • Advised users to update to the latest app version and then move their assets to a hardware wallet or to a wallet address they trust
  • Provided initial guidance through customer support and official channels: moving App Wallet assets, and also moving assets held on hardware wallets that share the same recovery phrase to a newly created wallet
  • Requested cooperation from exchanges to freeze assets suspected to be involved. Gave advance notice to key partners. Contacted the relevant foundations and discussed a joint response
  • Reported to and accepted by Korean law enforcement authorities
  • Began analysis of the underlying cause of the issue
Sept 16, 2026, evening–night (KST)
  • Displayed the relevant information as a pop-up notice in the DCENT app
  • Published the blog guides on how to check whether this applies to you and how to move assets
  • Analyzed the impact across DCENT hardware product lines and app versions
Sept 17, 2026, early morning (KST)
  • Continued to provide guidance through official channels
  • Reported impersonation accounts that could lead to secondary harm
  • Continued monitoring inquiries and community responses, and will provide further guidance as additional findings are confirmed
Sept 17, 2026 (KST)
  • Established the criteria for App Wallet action and released an in-app check feature
  • Established a hotline with law enforcement
  • Tracing stolen funds with an external security team

03Ongoing work

  • We are working with the relevant authorities to protect user assets and prevent further harm.
  • We are working with exchanges, the relevant authorities, and on-chain analysis specialists to freeze and trace assets suspected to be involved. Whether and when those assets can be frozen or recovered depends on the cooperation of third parties and on transaction activity on the blockchain.
  • We are applying and verifying additional safeguards, including pre-release verification procedures.

04What users should do

  1. Update the app to the latest version.
    Update the app only through the official app stores, and do not use installation files or links sent by text message, social media, or messenger apps. Moving assets without updating may put them at risk.
  2. Create a wallet with a new recovery phrase.
    Do not restore a wallet using your existing recovery phrase. Reusing an existing recovery phrase may regenerate the same or a related key, so use a new recovery phrase whether on the app or on a hardware wallet.
  3. Move your assets to a new address.
    Check not only native coins but also tokens, NFTs, staked assets, and token approvals separately.
  4. Do not reuse your previous address.
    A previous address cannot be deleted from the blockchain, so do not reuse it for any purpose, including deposits, signing, or token approvals.

Be sure to update the app to the latest version first, and then move your assets. For step-by-step instructions, follow the Asset Migration Guide.


05Official channels

Beware of impersonation

DCENT does not operate official messenger channels such as Telegram or Discord. Never enter your recovery phrase, wallet key, or PIN on any account or channel that takes advantage of this incident to pose as asset recovery or support. Do not provide them even if a support representative or a third party asks for them, and rely only on the official channels listed below.

DCENT is monitoring and reporting impersonation accounts that could lead to secondary harm. If you find an impersonation account, please report it.


We will update this page and our official channels as significant findings are confirmed. To check whether your wallet is affected, see How to check whether this applies to you. To move your assets, see the Asset Migration Guide. If you need help, please contact customer support.

This English text is a translation provided for convenience. In case of any discrepancy, the Korean version prevails.


Check whether this applies to your wallet

If it applies to you, follow the Asset Migration Guide to move your assets. If you have questions, please contact DCENT customer support.



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