diff --git a/lib/cmds/blockchain/blockchain.js b/lib/cmds/blockchain/blockchain.js
index 2689ac47..8e07a7a7 100644
--- a/lib/cmds/blockchain/blockchain.js
+++ b/lib/cmds/blockchain/blockchain.js
@@ -221,6 +221,7 @@ Blockchain.prototype.isClientInstalled = function(callback) {
 Blockchain.prototype.initChainAndGetAddress = function(callback) {
   const self = this;
   let address = null;
+  const ALREADY_INITIALIZED = 'already';
 
   // ensure datadir exists, bypassing the interactive liabilities prompt.
   self.datadir = '.embark/' + self.env + '/datadir';
@@ -236,14 +237,14 @@ Blockchain.prototype.initChainAndGetAddress = function(callback) {
       fs.copy(fs.embarkPath("js"), ".embark/" + self.env + "/js", {overwrite: true}, next);
     },
     function listAccounts(next) {
-      self.runCommand(self.client.listAccountsCommand(), {}, (err, stdout, stderr) => {
-        if (err || stderr || stdout === undefined || stdout.match(/{(\w+)}/) === null || stdout.indexOf("Fatal") >= 0) {
+      self.runCommand(self.client.listAccountsCommand(), {}, (err, stdout, _stderr) => {
+        if (err || stdout === undefined || stdout.match(/{(\w+)}/) === null || stdout.indexOf("Fatal") >= 0) {
           console.log(__("no accounts found").green);
           return next();
         }
         console.log(__("already initialized").green);
         address = stdout.match(/{(\w+)}/)[1];
-        next();
+        next(ALREADY_INITIALIZED);
       });
     },
     function genesisBlock(next) {
@@ -265,6 +266,9 @@ Blockchain.prototype.initChainAndGetAddress = function(callback) {
       });
     }
   ], (err) => {
+    if (err === ALREADY_INITIALIZED) {
+      err = null;
+    }
     callback(err, address);
   });
 };