diff --git a/pkg/crypto/keys/publickey.go b/pkg/crypto/keys/publickey.go
index edf033998..38f4a22a7 100644
--- a/pkg/crypto/keys/publickey.go
+++ b/pkg/crypto/keys/publickey.go
@@ -189,6 +189,7 @@ func (p *PublicKey) DecodeBinary(r *io.BinReader) {
 		ylsb := uint(prefix & 0x1)
 		y, err = decodeCompressedY(x, ylsb)
 		if err != nil {
+			r.Err = err
 			return
 		}
 	case 0x04:
diff --git a/pkg/crypto/keys/publickey_test.go b/pkg/crypto/keys/publickey_test.go
index c7a8f7665..38f80adc1 100644
--- a/pkg/crypto/keys/publickey_test.go
+++ b/pkg/crypto/keys/publickey_test.go
@@ -63,6 +63,12 @@ func TestDecodeFromString(t *testing.T) {
 	require.Error(t, err)
 }
 
+func TestDecodeFromStringBadCompressed(t *testing.T) {
+	str := "02ffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff"
+	_, err := NewPublicKeyFromString(str)
+	require.Error(t, err)
+}
+
 func TestPubkeyToAddress(t *testing.T) {
 	pubKey, err := NewPublicKeyFromString("031ee4e73a17d8f76dc02532e2620bcb12425b33c0c9f9694cc2caa8226b68cad4")
 	require.NoError(t, err)