diff --git a/cashu/core/crypto/keys.py b/cashu/core/crypto/keys.py
index 65869cba..36fb7974 100644
--- a/cashu/core/crypto/keys.py
+++ b/cashu/core/crypto/keys.py
@@ -16,8 +16,7 @@ def derive_keys(mnemonic: str, derivation_path: str):
     bip32 = BIP32.from_seed(mnemonic.encode())
     orders_str = [f"/{i}'" for i in range(settings.max_order)]
     return {
-        2
-        ** i: PrivateKey(
+        2**i: PrivateKey(
             bip32.get_privkey_from_path(derivation_path + orders_str[i]),
             raw=True,
         )
@@ -25,26 +24,25 @@ def derive_keys(mnemonic: str, derivation_path: str):
     }
 
 
-def derive_keys_sha256(master_key: str, derivation_path: str = ""):
+def derive_keys_sha256(seed: str, derivation_path: str = ""):
     """
     Deterministic derivation of keys for 2^n values.
     TODO: Implement BIP32.
     """
     return {
-        2
-        ** i: PrivateKey(
-            hashlib.sha256(
-                (master_key + derivation_path + str(i)).encode("utf-8")
-            ).digest()[:32],
+        2**i: PrivateKey(
+            hashlib.sha256((seed + derivation_path + str(i)).encode("utf-8")).digest()[
+                :32
+            ],
             raw=True,
         )
         for i in range(settings.max_order)
     }
 
 
-def derive_pubkey(master_key: str):
+def derive_pubkey(seed: str):
     return PrivateKey(
-        hashlib.sha256((master_key).encode("utf-8")).digest()[:32],
+        hashlib.sha256((seed).encode("utf-8")).digest()[:32],
         raw=True,
     ).pubkey
 
diff --git a/cashu/core/legacy.py b/cashu/core/legacy.py
index 87c64e96..7123476e 100644
--- a/cashu/core/legacy.py
+++ b/cashu/core/legacy.py
@@ -6,15 +6,14 @@
 
 
 def derive_keys_backwards_compatible_insecure_pre_0_12(
-    master_key: str, derivation_path: str = ""
+    seed: str, derivation_path: str = ""
 ):
     """
     WARNING: Broken key derivation for backwards compatibility with 0.11.
     """
     return {
-        2
-        ** i: PrivateKey(
-            hashlib.sha256((master_key + derivation_path + str(i)).encode("utf-8"))
+        2**i: PrivateKey(
+            hashlib.sha256((seed + derivation_path + str(i)).encode("utf-8"))
             .hexdigest()
             .encode("utf-8")[:32],
             raw=True,
diff --git a/cashu/mint/decrypt.py b/cashu/mint/encrypt.py
similarity index 91%
rename from cashu/mint/decrypt.py
rename to cashu/mint/encrypt.py
index 53c4b63f..adf0113a 100644
--- a/cashu/mint/decrypt.py
+++ b/cashu/mint/encrypt.py
@@ -146,6 +146,17 @@ async def migrate(no_dry_run):
                         keyset_dict["id"],
                     ),
                 )
+
+        click.echo("Initializing mint with encrypted seeds.")
+        encrypted_mint_private_key = aes.encrypt(settings.mint_private_key.encode())
+        ledger = Ledger(
+            db=Database("mint", settings.mint_database),
+            seed=encrypted_mint_private_key,
+            seed_decryption_key=settings.mint_seed_decryption_key,
+            derivation_path=settings.mint_derivation_path,
+            backends={},
+            crud=LedgerCrudSqlite(),
+        )
         click.echo("✅ Migration complete.")
 
 
diff --git a/cashu/mint/ledger.py b/cashu/mint/ledger.py
index 1849d3cb..0035f24a 100644
--- a/cashu/mint/ledger.py
+++ b/cashu/mint/ledger.py
@@ -76,17 +76,22 @@ def __init__(
         assert seed, "seed not set"
 
         # decrypt seed if seed_decryption_key is set
-        self.master_key = (
-            AESCipher(seed_decryption_key).decrypt(seed)
-            if seed_decryption_key
-            else seed
-        )
+        try:
+            self.seed = (
+                AESCipher(seed_decryption_key).decrypt(seed)
+                if seed_decryption_key
+                else seed
+            )
+        except Exception as e:
+            raise Exception(
+                f"Could not decrypt seed. Make sure that the seed is correct and the decryption key is set. {e}"
+            )
         self.derivation_path = derivation_path
 
         self.db = db
         self.crud = crud
         self.backends = backends
-        self.pubkey = derive_pubkey(self.master_key)
+        self.pubkey = derive_pubkey(self.seed)
         self.spent_proofs: Dict[str, Proof] = {}
 
     # ------- KEYS -------
@@ -109,7 +114,7 @@ async def activate_keyset(
             MintKeyset: Keyset
         """
         assert derivation_path, "derivation path not set"
-        seed = seed or self.master_key
+        seed = seed or self.seed
         tmp_keyset_local = MintKeyset(
             seed=seed,
             derivation_path=derivation_path,
@@ -132,7 +137,7 @@ async def activate_keyset(
             # no keyset for this derivation path yet
             # we create a new keyset (keys will be generated at instantiation)
             keyset = MintKeyset(
-                seed=seed or self.master_key,
+                seed=seed or self.seed,
                 derivation_path=derivation_path,
                 version=version or settings.version,
             )
@@ -503,7 +508,7 @@ async def melt_quote(
                 melt_quote.request
             )
             assert payment_quote.checking_id, "quote has no checking id"
-        
+
         expiry = None
         if invoice_obj.expiry is not None:
             expiry = invoice_obj.date + invoice_obj.expiry