diff --git a/js/models/core/TxProposals.js b/js/models/core/TxProposals.js
index 0ad9c0ff5..ec15936b1 100644
--- a/js/models/core/TxProposals.js
+++ b/js/models/core/TxProposals.js
@@ -5,10 +5,11 @@ var imports = require('soop').imports();
 var bitcore = require('bitcore');
 var util = bitcore.util;
 var Transaction = bitcore.Transaction;
-var Builder = bitcore.TransactionBuilder;
 var BuilderMockV0 = require('./BuilderMockV0');;
+var TransactionBuilder = bitcore.TransactionBuilder;
 var Script = bitcore.Script;
 var buffertools = bitcore.buffertools;
+var preconditions = require('preconditions').instance();
 
 function TxProposal(opts) {
   this.creator = opts.creator;
@@ -44,7 +45,7 @@ TxProposal.prototype.setSent = function(sentTxid) {
 TxProposal.fromObj = function(o) {
   var t = new TxProposal(o);
   try {
-    t.builder = new Builder.fromObj(o.builderObj);
+    t.builder = new TransactionBuilder.fromObj(o.builderObj);
   } catch (e) {
     if (!o.version) {
       t.builder = new BuilderMockV0(o.builderObj);
@@ -54,6 +55,14 @@ TxProposal.fromObj = function(o) {
   return t;
 };
 
+
+TxProposal.prototype.isValid = function() {
+  if (this.builder.signhash !== Transaction.SIGHASH_ALL) {
+    return false;
+  }
+  return true;
+};
+
 TxProposal.getSentTs = function() {
   return this.sentTs;
 };
@@ -218,7 +227,6 @@ TxProposals.prototype.merge = function(inTxp, author) {
   return ret;
 };
 
-var preconditions = require('preconditions').instance();
 TxProposals.prototype.add = function(data) {
   preconditions.checkArgument(data.inputChainPaths);
   preconditions.checkArgument(data.signedBy);
diff --git a/js/models/core/Wallet.js b/js/models/core/Wallet.js
index 00a1db9bc..7e37feeae 100644
--- a/js/models/core/Wallet.js
+++ b/js/models/core/Wallet.js
@@ -125,6 +125,15 @@ Wallet.prototype._handleTxProposal = function(senderId, data) {
   this.log('RECV TXPROPOSAL:', data);
 
   var inTxp = TxProposals.TxProposal.fromObj(data.txProposal);
+  var valid = inTxp.isValid();
+  if (!valid) {
+    var corruptEvent = {
+      type: 'corrupt',
+      cId: inTxp.creator
+    };
+    this.emit('txProposalEvent', corruptEvent);
+    return;
+  }
   var mergeInfo = this.txProposals.merge(inTxp, senderId);
   var added = this.addSeenToTxProposals();
 
diff --git a/js/services/controllerUtils.js b/js/services/controllerUtils.js
index 24bc8f04d..48024a837 100644
--- a/js/services/controllerUtils.js
+++ b/js/services/controllerUtils.js
@@ -149,15 +149,17 @@ angular.module('copayApp.services')
         }, 3000);
       });
       w.on('txProposalEvent', function(e) {
+        var user = w.publicKeyRing.nicknameForCopayer(e.cId);
         switch (e.type) {
           case 'signed':
-            var user = w.publicKeyRing.nicknameForCopayer(e.cId);
             notification.info('Transaction Update', 'A transaction was signed by ' + user);
             break;
           case 'rejected':
-            var user = w.publicKeyRing.nicknameForCopayer(e.cId);
             notification.info('Transaction Update', 'A transaction was rejected by ' + user);
             break;
+          case 'corrupt':
+            notification.error('Transaction Error', 'Received corrupt transaction from '+user);
+            break;
         }
       });
       w.on('addressBookUpdated', function(dontDigest) {
diff --git a/test/test.Wallet.js b/test/test.Wallet.js
index 01632051c..532fe34b7 100644
--- a/test/test.Wallet.js
+++ b/test/test.Wallet.js
@@ -16,6 +16,8 @@ var Network = require('./mocks/FakeNetwork');
 var Blockchain = require('./mocks/FakeBlockchain');
 var bitcore = bitcore || require('bitcore');
 var TransactionBuilder = bitcore.TransactionBuilder;
+var Transaction = bitcore.Transaction;
+var Address = bitcore.Address;
 
 var addCopayers = function(w) {
   for (var i = 0; i < 4; i++) {
@@ -1011,4 +1013,75 @@ describe('Wallet model', function() {
       copayConfig.forceNetwork = backup;
     });
   });
+
+  describe('validate txProposals', function() {
+    var a1 = 'n1pKARYYUnZwxBuGj3y7WqVDu6VLN7n971';
+    var a2 = 'mtxYYJXZJmQc2iJRHQ4RZkfxU5K7TE2qMJ';
+    var utxos = [{
+      address: a1,
+      txid: '2ac165fa7a3a2b535d106a0041c7568d03b531e58aeccdd3199d7289ab12cfc1',
+      vout: 1,
+      scriptPubKey: Address.getScriptPubKeyFor(a1).serialize().toString('hex'),
+      amount: 0.5,
+      confirmations: 200
+    }, {
+      address: a2,
+      txid: '88c4520ffd97ea565578afe0b40919120be704b36561c71ba4e450e83cb3c9fd',
+      vout: 1,
+      scriptPubKey: Address.getScriptPubKeyFor(a2).serialize().toString('hex'),
+      amount: 0.5001,
+      confirmations: 200
+    }];
+    var destAddress = 'myuAQcCc1REUgXGsCTiYhZvPPc3XxZ36G1';
+    var outs = [{
+      address: destAddress,
+      amount: 1.0
+    }];
+
+    var testValidate = function(signhash, result, done) {
+      var w = cachedCreateW();
+      var spy = sinon.spy();
+      w.on('txProposalEvent', spy);
+      w.on('txProposalEvent', function(e) {
+        e.type.should.equal(result);
+        done();
+      });
+      var opts = {};
+      opts.signhash = signhash;
+      var txb = new TransactionBuilder(opts)
+        .setUnspent(utxos)
+        .setOutputs(outs)
+        .sign(['cVBtNonMyTydnS3NnZyipbduXo9KZfF1aUZ3uQHcvJB6UARZbiWG',
+          'cRVF68hhZp1PUQCdjr2k6aVYb2cn6uabbySDPBizAJ3PXF7vDXTL'
+        ]);
+      var txp = {
+        'txProposal': {
+          'builderObj': txb.toObj()
+        }
+      };
+      w._handleTxProposal('senderID', txp, true);
+      spy.callCount.should.equal(1);
+    };
+
+    it('should validate for SIGHASH_ALL', function(done) {
+      var result = 'new';
+      var signhash = Transaction.SIGHASH_ALL;
+      testValidate(signhash, result, done);
+    });
+    it('should not validate for different SIGHASH_NONE', function(done) {
+      var result = 'corrupt';
+      var signhash = Transaction.SIGHASH_NONE;
+      testValidate(signhash, result, done);
+    });
+    it('should not validate for different SIGHASH_SINGLE', function(done) {
+      var result = 'corrupt';
+      var signhash = Transaction.SIGHASH_SINGLE;
+      testValidate(signhash, result, done);
+    });
+    it('should not validate for different SIGHASH_ANYONECANPAY', function(done) {
+      var result = 'corrupt';
+      var signhash = Transaction.SIGHASH_ANYONECANPAY;
+      testValidate(signhash, result, done);
+    });
+  });
 });