diff --git a/js/controllers/signin.js b/js/controllers/signin.js
index 06584f8f6..04eedc1c7 100644
--- a/js/controllers/signin.js
+++ b/js/controllers/signin.js
@@ -31,22 +31,19 @@ angular.module('copay.signin').controller('SigninController',
       walletFactory.network.on('badSecret', function() {
       });
 
-      walletFactory.joinCreateSession($scope.connectionId, $scope.nickname, function(err,w) {
+      var passphrase = Passphrase.getBase64($scope.joinPassword);
+      walletFactory.joinCreateSession($scope.connectionId, $scope.nickname, passphrase, function(err,w) {
         $scope.loading = false;
 
-        if (err || !w || !$scope.joinPassword) {
+        if (err || !w) {
           if (err === 'joinError') 
             $rootScope.flashMessage = { message: 'Can not find peer'};
           else if (err === 'badSecret')  
             $rootScope.flashMessage = { message: 'Bad secret secret string', type: 'error'};
-          else if (!$scope.joinPassword)
-            $rootScope.flashMessage = { message: 'Enter your wallet password', type: 'error' };
           else 
             $rootScope.flashMessage = { message: 'Unknown error', type: 'error'};
             controllerUtils.onErrorDigest();
         } else {
-            var passphrase = Passphrase.getBase64($scope.joinPassword);
-            w.storage._setPassphrase(passphrase);
             controllerUtils.startNetwork(w);
         }
       });
diff --git a/js/models/core/Passphrase.js b/js/models/core/Passphrase.js
index 57f765cd1..12a9edf17 100644
--- a/js/models/core/Passphrase.js
+++ b/js/models/core/Passphrase.js
@@ -2,7 +2,7 @@
 
 function Passphrase(config) {
  config = config || {};
- this.salt = config.storageSalt;
+ this.salt = config.storageSalt || 'mjuBtGybi/4=';
  this.iterations = config.iterations || 1000;
 };
 
diff --git a/js/models/core/WalletFactory.js b/js/models/core/WalletFactory.js
index a76446372..a757c340a 100644
--- a/js/models/core/WalletFactory.js
+++ b/js/models/core/WalletFactory.js
@@ -153,7 +153,7 @@ WalletFactory.prototype.remove = function(walletId) {
 };
 
 
-WalletFactory.prototype.joinCreateSession = function(secret, nickname, cb) {
+WalletFactory.prototype.joinCreateSession = function(secret, nickname, passphrase, cb) {
   var self = this;
 
   var s;
@@ -162,7 +162,7 @@ WalletFactory.prototype.joinCreateSession = function(secret, nickname, cb) {
   } catch (e) {
     return cb('badSecret');
   }
-
+  
   //Create our PrivateK
   var privateKey = new PrivateKey({ networkName: this.networkName });
   this.log('\t### PrivateKey Initialized');
@@ -180,6 +180,7 @@ WalletFactory.prototype.joinCreateSession = function(secret, nickname, cb) {
       if (data.type ==='walletId') {
         data.opts.privateKey = privateKey;
         data.opts.nickname =  nickname;
+        data.opts.passphrase = passphrase;
         var w = self.open(data.walletId, data.opts);
         w.firstCopayerId = s.pubKey;
         return cb(null, w);
diff --git a/js/models/storage/LocalEncrypted.js b/js/models/storage/LocalEncrypted.js
index 470c9f39f..14a05ad12 100644
--- a/js/models/storage/LocalEncrypted.js
+++ b/js/models/storage/LocalEncrypted.js
@@ -47,9 +47,11 @@ Storage.prototype._read = function(k) {
   var ret;
   try {
     ret = localStorage.getItem(k);
-    ret = this._decrypt(ret);
-    ret = ret.toString(CryptoJS.enc.Utf8);
-    ret = JSON.parse(ret);
+    if (ret){
+      ret = this._decrypt(ret);
+      ret = ret.toString(CryptoJS.enc.Utf8);
+      ret = JSON.parse(ret);
+    }
   } catch (e) {
     console.log('Error while decrypting: '+e);
     throw e;