The mnemonic phrase is a private key that is not encrypted. If someone did get hold of your mnemonic phrase, it is equivalent to taking control of your crypto assets.
To put it short, a set of the mnemonic phrase is a private key that is not encrypted.
A private key is usually a string of 64 hexadecimal characters.
Here is a typical private key: afdfd9c3d2095ef696594f6cedcae59e72dcd697e2a7521b1578140422a4f890
On the other hand, the mnemonic phrase is a set of 12/18/24 words, which is easier to read, write and back up.
With either one of them, you can access your crypto assets.
No matter which one you choose to use, we strongly recommend keeping it in secure locations.
A Mnemonic phrase is a private key that is not encrypted. Anyone who knows your mnemonic phrase could take away your crypto assets.
SafePal would neither read nor store your mnemonic phrase, so we can’t help to retrieve your assets back once your mnemonic phrase is leaked or lost.
Therefore, you need to transfer your assets to a new wallet right away when you find the mnemonic phrases is leaked or lost. You can create a new wallet on the SafePal wallet for such purpose, following these instructions:
1.Create a new wallet to receive your assets
Wallet Settings-->Reset wallet-->Create new wallet-->Write down the new mnemonic phrase and keep it secure-->Bind the wallet with SafePal App--> Create and copy the new receiving address.
2.Transfer your assets out
Wallet Settings-->Reset wallet-->Recover wallet with old mnemonic phrase-->Bind the wallet with SafePal App--> Transfer assets to new receiving address created in step 1.
This situation usually means the backup was incorrect.
You can check the spelling error of the Mnemonic through the open specification, BIP39.https://github.com/bitcoinjs/bip39/blob/master/src/wordlists/english.json
There are two possibilities for such situation:
1.The mnemonic phrase is not correctly backed up or entered.
Please verify whether the previously backed up mnemonic phrase was incorrect. Because each address has a corresponding mnemonic phrase, you need to make sure you have recorded the correct address for the wallet you want to import.
Meanwhile, you might also need to check if your mnemonic is correctly written. If you make mistakes during importing the phrase, it could also generate a new wallet address. The verification method is the same as the previous.
2. The mnemonic phrase is not a BIP44 standard mnemonic phrase.
SafePal supports BIP44 mnemonic generation standard. If your mnemonic phrase is not a BIP44-compatible one, it cannot be recovered on a SafePal wallet. Welcome to contact us at www.safepal.io to submit a request. if you have further questions.
So long as your mnemonic phrase is kept safe, no one can take control of your assets even if the thief gets your S1 hardware wallet. In the case of a wallet lost, stolen, or damaged, you can recover your wallet with the correct mnemonic phrase and Passphrase (if you set a Passphrase before) on a new SafePal S1 wallet, SafePal App, or any other wallets that support BIP39 mnemonic phrase standard.
We feel very sorry if this bad case happens to you, but we can do nothing about it.
SafePal is a tool to manage your crypto asset and protect your private key. However, we will not read nor store any of your mnemonic phrase or private key. In fact, your asset is on the blockchain rather than on the server of SafePal. We have no idea about the relation between one user and one address and we have no personal information (phone number, address, social media) about the owner of the address.
As blockchain is decentralized, irreversible and anonymous, it’s almost impossible to freeze account or rollback transaction. It’s different from the traditional financial institution like a bank. SafePal cannot locate the hacker or freeze an address. So once it happened, please call the police to look for some offline clue.
From day 1 when a new private key is generated on a S1 wallet, the key is always securely locked in the security element(Intro about the SE here).
For now there is no way to export the key out of the device. But users can still sign every transaction with the 6-12digits PIN code on S1, thus preventing exposure of the key itself.