diff --git a/__mocks__/matrix-js-sdk.js b/__mocks__/matrix-js-sdk.js
index 8f1bc35..c8515f2 100644
--- a/__mocks__/matrix-js-sdk.js
+++ b/__mocks__/matrix-js-sdk.js
@@ -24,7 +24,13 @@ export const mockInitCrypto = jest.fn()
 export const mockStartClient = jest.fn(() => {
   return Promise.resolve('value');
 });
-export const mockOnce = jest.fn()
+export const mockOnce = jest
+  .fn()
+  .mockImplementation((event, callback) => {
+    if (event === 'sync') {
+      callback('PREPARED')
+    }
+  })
 export const mockStopClient = jest.fn(() => {
   return Promise.resolve('value');
 });
diff --git a/src/components/chatbox.jsx b/src/components/chatbox.jsx
index 7ed5c93..43c6ad1 100644
--- a/src/components/chatbox.jsx
+++ b/src/components/chatbox.jsx
@@ -170,7 +170,9 @@ class ChatBox extends React.Component {
       window.clearInterval(this.state.waitIntervalId) // no more waiting messages
     }
 
-    this.state.localStorage.clear()
+    if (this.state.localStorage) {
+      this.state.localStorage.clear()
+    }
 
     if (resetState) {
       this.setState(this.initialState)
diff --git a/src/components/chatbox.test.js b/src/components/chatbox.test.js
index 5fd9d8b..a7cafb6 100644
--- a/src/components/chatbox.test.js
+++ b/src/components/chatbox.test.js
@@ -115,9 +115,7 @@ describe('Chatbox', () => {
     expect(createClient).toHaveBeenCalled()
     expect(mockInitCrypto).toHaveBeenCalled()
     expect(mockStartClient).toHaveBeenCalled()
-    expect(mockCreateRoom).toHaveBeenCalled()
-    expect(mockSetPowerLevel).toHaveBeenCalled()
-    expect(mockOn).toHaveBeenCalled()
+    expect(mockOnce).toHaveBeenCalled()
   })
 
   test('rejecting terms should not start chat', async () => {
@@ -146,6 +144,10 @@ describe('Chatbox', () => {
 
     acceptButton.simulate('click')
 
+    await waitForExpect(() => {
+      expect(mockOnce).toHaveBeenCalled()
+    });
+
     await waitForExpect(() => {
       expect(mockCreateRoom).toHaveBeenCalled()
     });
@@ -169,7 +171,7 @@ describe('Chatbox', () => {
   })
 
 
-  test('decryption failure should lead to a new unencrypted chat', async () => {
+  test('decryption failure should handle the message event and save the event ID in state', async () => {
     const chatbox = mount(<Chatbox {...testConfig} />)
     const dock = chatbox.find('button.dock')
     const instance = chatbox.instance()
@@ -183,25 +185,25 @@ describe('Chatbox', () => {
     acceptButton.simulate('click')
 
     await waitForExpect(() => {
-      expect(mockCreateRoom).toHaveBeenCalled()
+      expect(mockOnce).toHaveBeenCalled()
     });
 
-    jest.spyOn(instance, 'initializeUnencryptedChat')
-    instance.handleDecryptionError()
+    jest.spyOn(instance, 'handleMessageEvent')
+
+    instance.handleDecryptionError({
+      getId: () => 'test_event_id',
+      getType: () => 'm.message',
+      getSender: () => 'sender',
+      getRoomId: () => 'room id',
+      getContent: () => ({ body: 'test msg' }),
+      getTs: () => '123',
+    })
 
     await waitForExpect(() => {
-      expect(mockLeave).toHaveBeenCalled()
-    });
+      expect(instance.handleMessageEvent).toHaveBeenCalled()
+    })
 
-    await waitForExpect(() => {
-      expect(mockStopClient).toHaveBeenCalled()
-    });
-
-    await waitForExpect(() => {
-      expect(mockClearStores).toHaveBeenCalled()
-    });
-
-    expect(instance.initializeUnencryptedChat).toHaveBeenCalled()
+    expect(chatbox.state().decryptionErrors).toEqual({ 'test_event_id': true })
   })
 
   test('creating an unencrypted chat', async () => {