What to do if Wallet Recovery Phrase possibly compromised

I’m new to Crypto/Cardano. When I recently created my first Wallet on the Daedalus Mainnet 4.2.1. I unfortunately made a screenshot of the Wallet Recovery Phase which is automatically saved of an Ubuntu 20.04.4 Lts user. I created this user for Daedalus use only. I thought I had deleted this screenshot of the recovery phrase after confirming the written down phrase was correct, but I must have forgotten to, till now.

I’ve been researching the process of transferring ADA from my Binance Wallet to Daedalus, but then read about receiving addresses allowing hackers to gain access to wallets and then had a nagging concern about the sending of Daedalus’s receiving address to Binance. By chance I then noticed that I had the screenshot of the recovery phrase… and I now wondered if I could change this wallet’s recovery phrase.

Searching, I found the video below which thankfully I watched as I’m sure the wallet phrase has been unwittingly been exposed to potential compromise but now not sure what is best to do. I presume deleting the wallet is all that is needed to then recreate another wallet with new recovery phrase.

https://forum.cardano.org for “Wallet Recovery Phrase” and then watching Charles - Security Foundations: How to Secure Your Wallet Recovery Phrase for Cryptocurrency Wallets

Even though I thought at the time of installing Daedalus that running on Ubuntu with a specific user dedicated to Daedalus use only would be reasonably safe, I did not follow such a “hardcore” approach and I now feel it is needed to some degree…

So if I have installed Daedalus with all my details, although I have not yet transferred ADA to a wallet yet, phew… what am I to do? Just delete the wallet and then follow some of the advice given in the video?


Shall I uninstall Daedalus and start with fresh install, although I presume this is not necessary?

Having a screen shot of your wallet recovery phrase on your computer is an incredibly bad idea. If your machine is hacked, the hacker may view whatever images/screenshots you have saved, find the seed phrase image and then steal your funds.

You should probably create a new wallet (Daedalus allows the creation of more than one wallet) and this time do not screen shot the seed phrase but store it somewhere/somehow else. Once you have safely secured the seed phrase to you new wallet, you can transfer you funds from the old to the new and then delete the old wallet.

Additionaly here are some tips on how to split the seed phrase for a robuust backup: Seed phrase wallet backup template - Google Docs