diff --git a/state/block_cache.go b/state/block_cache.go
index e30e4121..0bbab6fa 100644
--- a/state/block_cache.go
+++ b/state/block_cache.go
@@ -5,11 +5,11 @@ import (
 	"sort"
 
 	acm "github.com/tendermint/tendermint/account"
-	"github.com/tendermint/tendermint/wire"
 	. "github.com/tendermint/tendermint/common"
 	dbm "github.com/tendermint/tendermint/db"
 	"github.com/tendermint/tendermint/merkle"
 	"github.com/tendermint/tendermint/types"
+	"github.com/tendermint/tendermint/wire"
 )
 
 func makeStorage(db dbm.DB, root []byte) merkle.Tree {
@@ -177,7 +177,7 @@ func (cache *BlockCache) Sync() {
 		addr, key := Tuple256Split(storageKey)
 		if addr != curAddr || curAcc == nil {
 			acc, storage, removed, _ := cache.accounts[string(addr.Postfix(20))].unpack()
-			if storage == nil {
+			if !removed && storage == nil {
 				storage = makeStorage(cache.db, acc.StorageRoot)
 			}
 			curAddr = addr
@@ -211,7 +211,7 @@ func (cache *BlockCache) Sync() {
 	for _, addrStr := range addrStrs {
 		acc, storage, removed, dirty := cache.accounts[addrStr].unpack()
 		if removed {
-			removed := cache.backend.RemoveAccount(acc.Address)
+			removed := cache.backend.RemoveAccount([]byte(addrStr))
 			if !removed {
 				PanicCrisis(Fmt("Could not remove account to be removed: %X", acc.Address))
 			}
diff --git a/state/state_test.go b/state/state_test.go
index 8eaebe37..9ec9b212 100644
--- a/state/state_test.go
+++ b/state/state_test.go
@@ -1,19 +1,18 @@
 package state
 
 import (
-	"github.com/tendermint/tendermint/account"
-	_ "github.com/tendermint/tendermint/config/tendermint_test"
-	"github.com/tendermint/tendermint/types"
-
 	"bytes"
 	"testing"
 	"time"
+
+	"github.com/tendermint/tendermint/account"
+	_ "github.com/tendermint/tendermint/config/tendermint_test"
+	"github.com/tendermint/tendermint/types"
 )
 
 func execTxWithState(state *State, tx types.Tx, runCall bool) error {
 	cache := NewBlockCache(state)
-	err := ExecTx(cache, tx, runCall, nil)
-	if err != nil {
+	if err := ExecTx(cache, tx, runCall, nil); err != nil {
 		return err
 	} else {
 		cache.Sync()
@@ -570,6 +569,60 @@ proof-of-work chain as proof of what happened while they were gone `
 
 }
 
+func TestSuicide(t *testing.T) {
+
+	state, privAccounts, _ := RandGenesisState(3, true, 1000, 1, true, 1000)
+
+	acc0 := state.GetAccount(privAccounts[0].PubKey.Address())
+	acc0PubKey := privAccounts[0].PubKey
+	acc1 := state.GetAccount(privAccounts[1].PubKey.Address())
+	acc2 := state.GetAccount(privAccounts[2].Address)
+	sendingAmount, refundedBalance, oldBalance := int64(1), acc1.Balance, acc2.Balance
+
+	newAcc1 := state.GetAccount(acc1.Address)
+
+	// store 0x1 at 0x1, push an address, then suicide :)
+	contractCode := []byte{0x60, 0x01, 0x60, 0x01, 0x55, 0x73}
+	contractCode = append(contractCode, acc2.Address...)
+	contractCode = append(contractCode, 0xff)
+	newAcc1.Code = contractCode
+	state.UpdateAccount(newAcc1)
+
+	// send call tx with no data, cause suicide
+	tx := types.NewCallTxWithNonce(acc0PubKey, acc1.Address, nil, sendingAmount, 1000, 0, acc0.Sequence+1)
+	tx.Input.Signature = privAccounts[0].Sign(state.ChainID, tx)
+
+	// we use cache instead of execTxWithState so we can run the tx twice
+	cache := NewBlockCache(state)
+	if err := ExecTx(cache, tx, true, nil); err != nil {
+		t.Errorf("Got error in executing call transaction, %v", err)
+	}
+
+	// if we do it again, we won't get an error, but the suicide
+	// shouldn't happen twice and the caller should lose fee
+	tx.Input.Sequence += 1
+	tx.Input.Signature = privAccounts[0].Sign(state.ChainID, tx)
+	if err := ExecTx(cache, tx, true, nil); err != nil {
+		t.Errorf("Got error in executing call transaction, %v", err)
+	}
+
+	// commit the block
+	cache.Sync()
+
+	// acc2 should receive the sent funds and the contracts balance
+	newAcc2 := state.GetAccount(acc2.Address)
+	newBalance := sendingAmount + refundedBalance + oldBalance
+	if newAcc2.Balance != newBalance {
+		t.Errorf("Unexpected newAcc2 balance. Expected %v, got %v",
+			newAcc2.Balance, newBalance)
+	}
+	newAcc1 = state.GetAccount(acc1.Address)
+	if newAcc1 != nil {
+		t.Errorf("Expected account to be removed")
+	}
+
+}
+
 func TestAddValidator(t *testing.T) {
 
 	// Generate a state, save & load it.
diff --git a/vm/vm.go b/vm/vm.go
index ea06825b..d0a0906e 100644
--- a/vm/vm.go
+++ b/vm/vm.go
@@ -174,9 +174,6 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value int64, gas
 
 		switch op {
 
-		case STOP: // 0x00
-			return nil, nil
-
 		case ADD: // 0x01
 			x, y := stack.Pop(), stack.Pop()
 			xb := new(big.Int).SetBytes(x[:])
@@ -837,7 +834,8 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value int64, gas
 			if useGasNegative(gas, GasGetAccount, &err) {
 				return nil, err
 			}
-			// TODO if the receiver is , then make it the fee.
+			// TODO if the receiver is , then make it the fee. (?)
+			// TODO: create account if doesn't exist (no reason not to)
 			receiver := vm.appState.GetAccount(addr)
 			if receiver == nil {
 				return nil, firstErr(err, ErrUnknownAddress)
@@ -849,6 +847,9 @@ func (vm *VM) call(caller, callee *Account, code, input []byte, value int64, gas
 			dbg.Printf(" => (%X) %v\n", addr[:4], balance)
 			fallthrough
 
+		case STOP: // 0x00
+			return nil, nil
+
 		default:
 			dbg.Printf("(pc) %-3v Invalid opcode %X\n", pc, op)
 			return nil, fmt.Errorf("Invalid opcode %X", op)