diff --git a/multiaccounts/accounts/database.go b/multiaccounts/accounts/database.go
index f65d03642..6b94fce65 100644
--- a/multiaccounts/accounts/database.go
+++ b/multiaccounts/accounts/database.go
@@ -555,8 +555,8 @@ func (db *Database) getKeypairs(tx *sql.Tx, keyUID string, includeRemoved bool)
 	return keypairs, nil
 }
 
-func (db *Database) getKeypairByKeyUID(tx *sql.Tx, keyUID string) (*Keypair, error) {
-	keypairs, err := db.getKeypairs(tx, keyUID, false)
+func (db *Database) getKeypairByKeyUID(tx *sql.Tx, keyUID string, includeRemoved bool) (*Keypair, error) {
+	keypairs, err := db.getKeypairs(tx, keyUID, includeRemoved)
 	if err != nil && err != sql.ErrNoRows {
 		return nil, err
 	}
@@ -700,7 +700,7 @@ func (db *Database) markKeypairRemoved(tx *sql.Tx, keyUID string, clock uint64)
 		return errDbTransactionIsNil
 	}
 
-	keypair, err := db.getKeypairByKeyUID(tx, keyUID)
+	keypair, err := db.getKeypairByKeyUID(tx, keyUID, false)
 	if err != nil {
 		return err
 	}
@@ -752,7 +752,7 @@ func (db *Database) GetAllKeypairs() ([]*Keypair, error) {
 
 // Returns keypair if it is not marked as removed and its accounts which are not marked as removed.
 func (db *Database) GetKeypairByKeyUID(keyUID string) (*Keypair, error) {
-	return db.getKeypairByKeyUID(nil, keyUID)
+	return db.getKeypairByKeyUID(nil, keyUID, false)
 }
 
 // Returns active accounts (excluding removed).
@@ -799,7 +799,7 @@ func (db *Database) GetAllWatchOnlyAccounts() (res []*Account, err error) {
 }
 
 func (db *Database) IsAnyAccountPartiallyOrFullyOperableForKeyUID(keyUID string) (bool, error) {
-	kp, err := db.getKeypairByKeyUID(nil, keyUID)
+	kp, err := db.getKeypairByKeyUID(nil, keyUID, false)
 	if err != nil {
 		return false, err
 	}
@@ -847,7 +847,7 @@ func (db *Database) RemoveAccount(address types.Address, clock uint64) error {
 		return err
 	}
 
-	kp, err := db.getKeypairByKeyUID(tx, acc.KeyUID)
+	kp, err := db.getKeypairByKeyUID(tx, acc.KeyUID, false)
 	if err != nil && err != ErrDbKeypairNotFound {
 		return err
 	}
@@ -937,7 +937,7 @@ func (db *Database) saveOrUpdateAccounts(tx *sql.Tx, accounts []*Account, update
 		// only watch only accounts have an empty `KeyUID` field
 		var keyUID *string
 		if acc.KeyUID != "" {
-			relatedKeypair, err = db.getKeypairByKeyUID(tx, acc.KeyUID)
+			relatedKeypair, err = db.getKeypairByKeyUID(tx, acc.KeyUID, true)
 			if err != nil {
 				if err == sql.ErrNoRows {
 					// all accounts, except watch only accounts, must have a row in `keypairs` table with the same key uid
@@ -948,7 +948,7 @@ func (db *Database) saveOrUpdateAccounts(tx *sql.Tx, accounts []*Account, update
 			keyUID = &acc.KeyUID
 		}
 		var exists bool
-		err = tx.QueryRow("SELECT EXISTS (SELECT 1 FROM keypairs_accounts WHERE address = ?)", acc.Address).Scan(&exists)
+		err = tx.QueryRow("SELECT EXISTS (SELECT 1 FROM keypairs_accounts WHERE address = ? AND removed = 0)", acc.Address).Scan(&exists)
 		if err != nil {
 			return err
 		}
@@ -1089,7 +1089,7 @@ func (db *Database) SaveOrUpdateKeypair(keypair *Keypair) error {
 	}()
 
 	// If keypair is being saved, not updated, then it must be at least one account and all accounts must have the same key uid.
-	dbKeypair, err := db.getKeypairByKeyUID(tx, keypair.KeyUID)
+	dbKeypair, err := db.getKeypairByKeyUID(tx, keypair.KeyUID, true)
 	if err != nil && err != ErrDbKeypairNotFound {
 		return err
 	}
@@ -1141,7 +1141,7 @@ func (db *Database) UpdateKeypairName(keyUID string, name string, clock uint64,
 		_ = tx.Rollback()
 	}()
 
-	_, err = db.getKeypairByKeyUID(tx, keyUID)
+	_, err = db.getKeypairByKeyUID(tx, keyUID, false)
 	if err != nil {
 		return err
 	}
diff --git a/protocol/messenger_handler.go b/protocol/messenger_handler.go
index 1cc7955db..45fc0b13a 100644
--- a/protocol/messenger_handler.go
+++ b/protocol/messenger_handler.go
@@ -3193,10 +3193,6 @@ func (m *Messenger) handleSyncKeypair(message *protobuf.SyncKeypair) (*accounts.
 		}
 		// in case of keypair update, we need to keep `synced_from` field as it was when keypair was introduced to this device for the first time
 		kp.SyncedFrom = dbKeypair.SyncedFrom
-	} else {
-		if kp.Removed {
-			return nil, nil
-		}
 	}
 
 	for _, sAcc := range message.Accounts {
@@ -3221,11 +3217,9 @@ func (m *Messenger) handleSyncKeypair(message *protobuf.SyncKeypair) (*accounts.
 
 	if kp.Removed {
 		// delete all keystore files
-		for _, dbAcc := range dbKeypair.Accounts {
-			err = m.deleteKeystoreFileForAddress(dbAcc.Address)
-			if err != nil {
-				return nil, err
-			}
+		err = m.deleteKeystoreFilesForKeypair(dbKeypair)
+		if err != nil {
+			return nil, err
 		}
 	} else if !accountReceivedFromLocalPairing && dbKeypair != nil {
 		for _, dbAcc := range dbKeypair.Accounts {
@@ -3251,8 +3245,8 @@ func (m *Messenger) handleSyncKeypair(message *protobuf.SyncKeypair) (*accounts.
 		return nil, err
 	}
 
-	// if entire keypair was removed, there is no point to continue
-	if kp.Removed {
+	// if entire keypair was removed and keypair is already in db, there is no point to continue
+	if kp.Removed && dbKeypair != nil {
 		// if keypair is retrieved from backed up data, no need for resolving accounts positions
 		if message.SyncedFrom != accounts.SyncedFromBackup {
 			err = m.settings.ResolveAccountsPositions(message.Clock)
diff --git a/protocol/messenger_wallet.go b/protocol/messenger_wallet.go
index 4ba127b07..3100b5c1e 100644
--- a/protocol/messenger_wallet.go
+++ b/protocol/messenger_wallet.go
@@ -190,8 +190,6 @@ func (m *Messenger) deleteKeystoreFileForAddress(address types.Address) error {
 			return err
 		}
 
-		lastAcccountOfKeypairWithTheSameKey := len(kp.Accounts) == 1
-
 		if len(kp.Keycards) == 0 {
 			err = m.accountsManager.DeleteAccount(address)
 			var e *account.ErrCannotLocateKeyFile
@@ -200,6 +198,7 @@ func (m *Messenger) deleteKeystoreFileForAddress(address types.Address) error {
 			}
 
 			if acc.Type != accounts.AccountTypeKey {
+				lastAcccountOfKeypairWithTheSameKey := len(kp.Accounts) == 1
 				if lastAcccountOfKeypairWithTheSameKey {
 					err = m.accountsManager.DeleteAccount(types.Address(ethcommon.HexToAddress(kp.DerivedFrom)))
 					var e *account.ErrCannotLocateKeyFile
@@ -214,6 +213,40 @@ func (m *Messenger) deleteKeystoreFileForAddress(address types.Address) error {
 	return nil
 }
 
+func (m *Messenger) deleteKeystoreFilesForKeypair(keypair *accounts.Keypair) (err error) {
+	if keypair == nil || len(keypair.Keycards) > 0 {
+		return
+	}
+
+	anyAccountFullyOrPartiallyOperable := false
+	for _, acc := range keypair.Accounts {
+		if acc.Removed || acc.Operable == accounts.AccountNonOperable {
+			continue
+		}
+		if !anyAccountFullyOrPartiallyOperable {
+			anyAccountFullyOrPartiallyOperable = true
+		}
+		if acc.Operable == accounts.AccountPartiallyOperable {
+			continue
+		}
+		err = m.accountsManager.DeleteAccount(acc.Address)
+		var e *account.ErrCannotLocateKeyFile
+		if err != nil && !errors.As(err, &e) {
+			return err
+		}
+	}
+
+	if anyAccountFullyOrPartiallyOperable && keypair.Type != accounts.KeypairTypeKey {
+		err = m.accountsManager.DeleteAccount(types.Address(ethcommon.HexToAddress(keypair.DerivedFrom)))
+		var e *account.ErrCannotLocateKeyFile
+		if err != nil && !errors.As(err, &e) {
+			return err
+		}
+	}
+
+	return
+}
+
 func (m *Messenger) DeleteAccount(address types.Address) error {
 	acc, err := m.settings.GetAccountByAddress(address)
 	if err != nil {
@@ -266,11 +299,9 @@ func (m *Messenger) DeleteKeypair(keyUID string) error {
 		return accounts.ErrCannotRemoveProfileKeypair
 	}
 
-	for _, acc := range kp.Accounts {
-		err = m.deleteKeystoreFileForAddress(acc.Address)
-		if err != nil {
-			return err
-		}
+	err = m.deleteKeystoreFilesForKeypair(kp)
+	if err != nil {
+		return err
 	}
 
 	clock, _ := m.getLastClockWithRelatedChat()