cosmos · aljo242 · Oct 30, 2025 · Oct 30, 2025 · Oct 30, 2025
diff --git a/CHANGELOG.md b/CHANGELOG.md
@@ -1,6 +1,18 @@
 # CHANGELOG
 
-## UNRELEASED
+## v0.5.1
+
+### DEPENDENCIES
+
+### IMPROVEMENTS
+
+### FEATURES
+
+### BUG FIXES
+
+- [\#769](https://github.com/cosmos/evm/pull/769) Fix erc20 ibc middleware to not to validate sender address format.
+
+## v0.5.0
 
 ### DEPENDENCIES
 

diff --git a/tests/integration/x/erc20/test_ibc_callback.go b/tests/integration/x/erc20/test_ibc_callback.go
@@ -102,28 +102,28 @@ func (s *KeeperTestSuite) TestOnRecvPacketRegistered() {
 			expCoins:      coins,
 		},
 		{
-			name: "error - invalid sender (no '1')",
+			name: "success - invalid sender (no '1')",
 			malleate: func() {
 				transfer := transfertypes.NewFungibleTokenPacketData(registeredDenom, "100", "evmos", ethsecpAddrCosmos, "")
 				bz := transfertypes.ModuleCdc.MustMarshalJSON(&transfer)
 				packet = channeltypes.NewPacket(bz, 100, transfertypes.PortID, sourceChannel, transfertypes.PortID, cosmosEVMChannel, timeoutHeight, 0)
 			},
 			receiver:      secpAddr,
-			ackSuccess:    false,
-			checkBalances: false,
+			ackSuccess:    true,
+			checkBalances: true,
 			expErc20s:     big.NewInt(0),
 			expCoins:      coins,
 		},
 		{
-			name: "error - invalid sender (bad address)",
+			name: "success - invalid sender (bad address)",
 			malleate: func() {
 				transfer := transfertypes.NewFungibleTokenPacketData(registeredDenom, "100", "badba1sv9m0g7ycejwr3s369km58h5qe7xj77hvcxrms", ethsecpAddrCosmos, "")
 				bz := transfertypes.ModuleCdc.MustMarshalJSON(&transfer)
 				packet = channeltypes.NewPacket(bz, 100, transfertypes.PortID, sourceChannel, transfertypes.PortID, cosmosEVMChannel, timeoutHeight, 0)
 			},
 			receiver:      secpAddr,
-			ackSuccess:    false,
-			checkBalances: false,
+			ackSuccess:    true,
+			checkBalances: true,
 			expErc20s:     big.NewInt(0),
 			expCoins:      coins,
 		},

diff --git a/tests/integration/x/erc20/test_mint.go b/tests/integration/x/erc20/test_mint.go
@@ -11,7 +11,6 @@ import (
 
 func (s *KeeperTestSuite) TestMintingEnabled() {
 	var ctx sdk.Context
-	sender := sdk.AccAddress(utiltx.GenerateAddress().Bytes())
 	receiver := sdk.AccAddress(utiltx.GenerateAddress().Bytes())
 	expPair := types.NewTokenPair(utiltx.GenerateAddress(), "coin", types.OWNER_MODULE)
 	id := expPair.GetID()
@@ -97,7 +96,7 @@ func (s *KeeperTestSuite) TestMintingEnabled() {
 
 			tc.malleate()
 
-			pair, err := s.network.App.GetErc20Keeper().MintingEnabled(ctx, sender, receiver, expPair.Erc20Address)
+			pair, err := s.network.App.GetErc20Keeper().MintingEnabled(ctx, receiver, expPair.Erc20Address)
 			if tc.expPass {
 				s.Require().NoError(err)
 				s.Require().Equal(expPair, pair)

diff --git a/tests/integration/x/erc20/test_msg_server.go b/tests/integration/x/erc20/test_msg_server.go
@@ -261,6 +261,7 @@ func (s *KeeperTestSuite) TestConvertERC20NativeERC20() {
 				mockBankKeeper.EXPECT().SendCoinsFromModuleToAccount(gomock.Any(), gomock.Any(), gomock.Any(), gomock.Any()).Return(fmt.Errorf("failed to unescrow")).AnyTimes()
 				mockBankKeeper.EXPECT().BlockedAddr(gomock.Any()).Return(false).AnyTimes()
 				mockBankKeeper.EXPECT().GetBalance(gomock.Any(), gomock.Any(), gomock.Any()).Return(sdk.Coin{Denom: "coin", Amount: math.OneInt()}).AnyTimes()
+				mockBankKeeper.EXPECT().IsSendEnabledCoin(gomock.Any(), gomock.Any()).Return(true).AnyTimes()
 			},
 			contractMinterBurner,
 			false,
@@ -287,6 +288,7 @@ func (s *KeeperTestSuite) TestConvertERC20NativeERC20() {
 				mockBankKeeper.EXPECT().SendCoinsFromModuleToAccount(gomock.Any(), gomock.Any(), gomock.Any(), gomock.Any()).Return(fmt.Errorf("failed to unescrow"))
 				mockBankKeeper.EXPECT().BlockedAddr(gomock.Any()).Return(false)
 				mockBankKeeper.EXPECT().GetBalance(gomock.Any(), gomock.Any(), gomock.Any()).Return(sdk.Coin{Denom: "coin", Amount: math.OneInt()})
+				mockBankKeeper.EXPECT().IsSendEnabledCoin(gomock.Any(), gomock.Any()).Return(true).AnyTimes()
 			},
 			contractMinterBurner,
 			false,
@@ -313,6 +315,7 @@ func (s *KeeperTestSuite) TestConvertERC20NativeERC20() {
 				mockBankKeeper.EXPECT().SendCoinsFromModuleToAccount(gomock.Any(), gomock.Any(), gomock.Any(), gomock.Any()).Return(nil)
 				mockBankKeeper.EXPECT().BlockedAddr(gomock.Any()).Return(false)
 				mockBankKeeper.EXPECT().GetBalance(gomock.Any(), gomock.Any(), gomock.Any()).Return(sdk.Coin{Denom: coinName, Amount: math.OneInt()}).AnyTimes()
+				mockBankKeeper.EXPECT().IsSendEnabledCoin(gomock.Any(), gomock.Any()).Return(true).AnyTimes()
 			},
 			contractMinterBurner,
 			false,
@@ -568,6 +571,7 @@ func (s *KeeperTestSuite) TestConvertNativeERC20ToEVMERC20() {
 				mockBankKeeper.EXPECT().SendCoinsFromAccountToModule(gomock.Any(), gomock.Any(), gomock.Any(), gomock.Any()).Return(fmt.Errorf("failed to unescrow")).AnyTimes()
 				mockBankKeeper.EXPECT().BlockedAddr(gomock.Any()).Return(false).AnyTimes()
 				mockBankKeeper.EXPECT().GetBalance(gomock.Any(), gomock.Any(), gomock.Any()).Return(sdk.Coin{Denom: "coin", Amount: math.OneInt()}).AnyTimes()
+				mockBankKeeper.EXPECT().IsSendEnabledCoin(gomock.Any(), gomock.Any()).Return(true).AnyTimes()
 			},
 			contractMinterBurner,
 			false,
@@ -593,6 +597,7 @@ func (s *KeeperTestSuite) TestConvertNativeERC20ToEVMERC20() {
 				mockBankKeeper.EXPECT().SendCoinsFromAccountToModule(gomock.Any(), gomock.Any(), gomock.Any(), gomock.Any()).Return(nil)
 				mockBankKeeper.EXPECT().BurnCoins(gomock.Any(), gomock.Any(), gomock.Any()).Return(fmt.Errorf("failed to burn")).AnyTimes()
 				mockBankKeeper.EXPECT().BlockedAddr(gomock.Any()).Return(false)
+				mockBankKeeper.EXPECT().IsSendEnabledCoin(gomock.Any(), gomock.Any()).Return(true).AnyTimes()
 			},
 			contractMinterBurner,
 			false,

diff --git a/x/erc20/keeper/ibc_callbacks.go b/x/erc20/keeper/ibc_callbacks.go
@@ -62,12 +62,6 @@ func (k Keeper) OnRecvPacket(
 	}
 	recipient := sdk.AccAddress(recipientBz)
 
-	senderBz, err := k.addrCodec.StringToBytes(data.Sender)
-	if err != nil {
-		return channeltypes.NewErrorAcknowledgement(errorsmod.Wrap(err, "invalid sender"))
-	}
-	sender := sdk.AccAddress(senderBz)
-
 	receiverAcc := k.accountKeeper.GetAccount(ctx, recipient)
 
 	// return acknowledgement without conversion if receiver is a module account
@@ -128,7 +122,7 @@ func (k Keeper) OnRecvPacket(
 			return ack
 		}
 
-		pair, err := k.MintingEnabled(ctx, sender, recipient, coin.Denom)
+		pair, err := k.MintingEnabled(ctx, recipient, coin.Denom)
 		if err != nil {
 			ctx.EventManager().EmitEvent(
 				sdk.NewEvent("erc20_callback_failure",

diff --git a/x/erc20/keeper/mint.go b/x/erc20/keeper/mint.go
@@ -17,7 +17,7 @@ import (
 //   - bank module transfers are enabled for the Cosmos coin
 func (k Keeper) MintingEnabled(
 	ctx sdk.Context,
-	sender, receiver sdk.AccAddress,
+	receiver sdk.AccAddress,
 	token string,
 ) (types.TokenPair, error) {
 	if !k.IsERC20Enabled(ctx) {
@@ -57,7 +57,7 @@ func (k Keeper) MintingEnabled(
 
 	// check if minting to a recipient address other than the sender is enabled
 	// for for the given coin denom
-	if !sender.Equals(receiver) && !k.bankKeeper.IsSendEnabledCoin(ctx, coin) {
+	if !k.bankKeeper.IsSendEnabledCoin(ctx, coin) {
 		return types.TokenPair{}, errorsmod.Wrapf(
 			banktypes.ErrSendDisabled, "minting '%s' coins to an external address is currently disabled", token,
 		)

diff --git a/x/erc20/keeper/msg_server.go b/x/erc20/keeper/msg_server.go
@@ -33,7 +33,7 @@ func (k Keeper) ConvertERC20(
 	receiver := sdk.MustAccAddressFromBech32(msg.Receiver)
 	sender := common.HexToAddress(msg.Sender)
 
-	pair, err := k.MintingEnabled(ctx, sender.Bytes(), receiver, msg.ContractAddress)
+	pair, err := k.MintingEnabled(ctx, receiver, msg.ContractAddress)
 	if err != nil {
 		return nil, err
 	}
@@ -199,7 +199,7 @@ func (k Keeper) ConvertCoin(
 	sender := sdk.MustAccAddressFromBech32(msg.Sender)
 	receiver := common.HexToAddress(msg.Receiver)
 
-	pair, err := k.MintingEnabled(ctx, sender, receiver.Bytes(), msg.Coin.Denom)
+	pair, err := k.MintingEnabled(ctx, receiver.Bytes(), msg.Coin.Denom)
 	if err != nil {
 		return nil, err
 	}