diff --git a/api/geth_backend.go b/api/geth_backend.go
index e10e22f69..3c764d60e 100644
--- a/api/geth_backend.go
+++ b/api/geth_backend.go
@@ -1372,7 +1372,15 @@ func (b *GethStatusBackend) saveAccountsAndSettings(settings settings.Settings,
 		LastUsedDerivationIndex: 0,
 	}
 
+	// When creating a new account, the chat account should have position -1, cause it doesn't participate
+	// in the wallet view and default wallet account should be at position 0.
 	for _, acc := range subaccs {
+		if acc.Chat {
+			acc.Position = -1
+		}
+		if acc.Wallet {
+			acc.Position = 0
+		}
 		acc.Operable = accounts.AccountFullyOperable
 		keypair.Accounts = append(keypair.Accounts, acc)
 	}
diff --git a/multiaccounts/accounts/database.go b/multiaccounts/accounts/database.go
index 96fca9a3a..99f7d3b14 100644
--- a/multiaccounts/accounts/database.go
+++ b/multiaccounts/accounts/database.go
@@ -433,9 +433,10 @@ func (db *Database) processRows(rows *sql.Rows) ([]*Keypair, []*Account, error)
 // If `includeRemoved` is true and `keyUID` is empty, then all keypairs will be returned (regardless how they are flagged).
 func (db *Database) getKeypairs(tx *sql.Tx, keyUID string, includeRemoved bool) ([]*Keypair, error) {
 	var (
-		rows  *sql.Rows
-		err   error
-		where string
+		rows           *sql.Rows
+		err            error
+		mainQueryWhere string
+		subQueryWhere  string
 	)
 	if tx == nil {
 		tx, err = db.db.Begin()
@@ -452,12 +453,16 @@ func (db *Database) getKeypairs(tx *sql.Tx, keyUID string, includeRemoved bool)
 	}
 
 	if keyUID != "" {
-		where = "WHERE k.key_uid = ?"
+		mainQueryWhere = "WHERE k.key_uid = ?"
 		if !includeRemoved {
-			where += " AND k.removed = 0"
+			mainQueryWhere += " AND k.removed = 0"
 		}
 	} else if !includeRemoved {
-		where = "WHERE k.removed = 0"
+		mainQueryWhere = "WHERE k.removed = 0"
+	}
+
+	if !includeRemoved {
+		subQueryWhere = "WHERE removed = 0"
 	}
 
 	query := fmt.Sprintf( // nolint: gosec
@@ -486,14 +491,13 @@ func (db *Database) getKeypairs(tx *sql.Tx, keyUID string, includeRemoved bool)
 				SELECT *
 				FROM
 					keypairs_accounts
-				WHERE
-					removed = 0
+				%s
 			) AS ka
 		ON
 			k.key_uid = ka.key_uid
 		%s
 		ORDER BY
-			ka.position`, where)
+			ka.position`, subQueryWhere, mainQueryWhere)
 
 	stmt, err := tx.Prepare(query)
 	if err != nil {
diff --git a/protocol/messenger_backup_handler.go b/protocol/messenger_backup_handler.go
index 9ea20100a..d33040dd8 100644
--- a/protocol/messenger_backup_handler.go
+++ b/protocol/messenger_backup_handler.go
@@ -201,6 +201,16 @@ func (m *Messenger) handleKeypair(message *protobuf.SyncKeypair) error {
 		return nil
 	}
 
+	multiAcc, err := m.multiAccounts.GetAccount(message.KeyUid)
+	if err != nil {
+		return err
+	}
+	// If user is recovering his account via seed phrase, but the backed up messages indicate that the profile keypair
+	// is a keycard related profile, then we need to remove related profile keycards (only profile, other keycards should remain).
+	if multiAcc != nil && multiAcc.KeyUID == message.KeyUid && multiAcc.KeycardPairing == "" && len(message.Keycards) > 0 {
+		message.Keycards = []*protobuf.SyncKeycard{}
+	}
+
 	keypair, err := m.handleSyncKeypair(message)
 	if err != nil {
 		if err == ErrTryingToStoreOldKeypair {
@@ -225,7 +235,7 @@ func (m *Messenger) handleWatchOnlyAccount(message *protobuf.SyncAccount) error
 		return nil
 	}
 
-	acc, err := m.handleSyncWatchOnlyAccount(message)
+	acc, err := m.handleSyncWatchOnlyAccount(message, true)
 	if err != nil {
 		if err == ErrTryingToStoreOldWalletAccount {
 			return nil
diff --git a/protocol/messenger_handler.go b/protocol/messenger_handler.go
index dd4161ad0..6e10aa274 100644
--- a/protocol/messenger_handler.go
+++ b/protocol/messenger_handler.go
@@ -3085,7 +3085,7 @@ func (m *Messenger) resolveAccountOperability(syncAcc *protobuf.SyncAccount, syn
 	return accountsOperability, nil
 }
 
-func (m *Messenger) handleSyncWatchOnlyAccount(message *protobuf.SyncAccount) (*accounts.Account, error) {
+func (m *Messenger) handleSyncWatchOnlyAccount(message *protobuf.SyncAccount, fromBackup bool) (*accounts.Account, error) {
 	if message.KeyUid != "" {
 		return nil, ErrNotWatchOnlyAccount
 	}
@@ -3108,9 +3108,15 @@ func (m *Messenger) handleSyncWatchOnlyAccount(message *protobuf.SyncAccount) (*
 			if err != nil {
 				return nil, err
 			}
-			err = m.settings.ResolveAccountsPositions(message.Clock)
+			// if keypair is retrieved from backed up data, no need for resolving accounts positions
+			if !fromBackup {
+				err = m.settings.ResolveAccountsPositions(message.Clock)
+				if err != nil {
+					return nil, err
+				}
+			}
 			dbAccount.Removed = true
-			return dbAccount, err
+			return dbAccount, nil
 		}
 	}
 
@@ -3193,6 +3199,15 @@ func (m *Messenger) handleSyncKeypair(message *protobuf.SyncKeypair) (*accounts.
 
 	for _, sAcc := range message.Accounts {
 		syncKpMigratedToKeycard := len(message.Keycards) > 0
+		if message.SyncedFrom == accounts.SyncedFromBackup && kp.Type == accounts.KeypairTypeProfile {
+			// if a profile keypair is coming from backup, we're handling within this block the case when a recovering
+			// was inititiated via keycard, while backed up profile keypair data refers to a regular profile
+			multiAcc, err := m.multiAccounts.GetAccount(kp.KeyUID)
+			if err != nil {
+				return nil, err
+			}
+			syncKpMigratedToKeycard = multiAcc != nil && multiAcc.KeycardPairing != ""
+		}
 		accountOperability, err := m.resolveAccountOperability(sAcc, syncKpMigratedToKeycard, accountReceivedFromLocalPairing)
 		if err != nil {
 			return nil, err
@@ -3236,9 +3251,12 @@ func (m *Messenger) handleSyncKeypair(message *protobuf.SyncKeypair) (*accounts.
 
 	// if entire keypair was removed, there is no point to continue
 	if kp.Removed {
-		err = m.settings.ResolveAccountsPositions(message.Clock)
-		if err != nil {
-			return nil, err
+		// 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)
+			if err != nil {
+				return nil, err
+			}
 		}
 		return kp, nil
 	}
@@ -3249,10 +3267,13 @@ func (m *Messenger) handleSyncKeypair(message *protobuf.SyncKeypair) (*accounts.
 		return nil, err
 	}
 
-	// then resolve accounts positions, cause some accounts might be removed
-	err = m.settings.ResolveAccountsPositions(message.Clock)
-	if err != nil {
-		return nil, err
+	// if keypair is retrieved from backed up data, no need for resolving accounts positions
+	if message.SyncedFrom != accounts.SyncedFromBackup {
+		// then resolve accounts positions, cause some accounts might be removed
+		err = m.settings.ResolveAccountsPositions(message.Clock)
+		if err != nil {
+			return nil, err
+		}
 	}
 
 	for _, sKc := range message.Keycards {
@@ -3292,7 +3313,7 @@ func (m *Messenger) HandleSyncAccountsPositions(state *ReceivedMessageState, mes
 }
 
 func (m *Messenger) HandleSyncWatchOnlyAccount(state *ReceivedMessageState, message protobuf.SyncAccount) error {
-	acc, err := m.handleSyncWatchOnlyAccount(&message)
+	acc, err := m.handleSyncWatchOnlyAccount(&message, false)
 	if err != nil {
 		if err == ErrTryingToStoreOldWalletAccount {
 			return nil