diff --git a/js/controllers/import.js b/js/controllers/import.js
index 6d83e62a5..22b4a50ae 100644
--- a/js/controllers/import.js
+++ b/js/controllers/import.js
@@ -30,7 +30,7 @@ angular.module('copayApp.controllers').controller('ImportController',
       $rootScope.iden.importEncryptedWallet(encryptedObj, password, skipFields, opts, function(err, w) {
         if (!w) {
           $scope.loading = false;
-          notification.error('Error', err || 'Wrong password');
+          $scope.error = 'Wrong password';
           $rootScope.$digest();
           return;
         }
@@ -47,7 +47,7 @@ angular.module('copayApp.controllers').controller('ImportController',
           updateStatus('Importing wallet - We are almost there...');
           if (err) {
             $scope.loading = false;
-            notification.error('Error', 'Error updating indexes: ' + err);
+            $scope.error = 'Error updating indexes: ' + err;
           }
           controllerUtils.installWalletHandlers($scope, w);
           controllerUtils.setFocusedWallet(w);
@@ -72,7 +72,7 @@ angular.module('copayApp.controllers').controller('ImportController',
             function(err, wallet) {
               if (err) {
                 $scope.loading = false;
-                notification.error('Error', 'Could not read wallet. Please check your password');
+                $scope.error = 'Could not read wallet. Please check your password';
               } else {
                 controllerUtils.installWalletHandlers($scope, wallet);
                 controllerUtils.setFocusedWallet(wallet);
@@ -89,7 +89,7 @@ angular.module('copayApp.controllers').controller('ImportController',
 
       if (form.$invalid) {
         $scope.loading = false;
-        notification.error('Error', 'There is an error in the form.');
+        $scope.error = 'There is an error in the form';
         return;
       }
 
@@ -104,8 +104,7 @@ angular.module('copayApp.controllers').controller('ImportController',
 
       if (!backupFile && !backupText) {
         $scope.loading = false;
-        notification.error('Error', 'Please, select your backup file');
-        $scope.loading = false;
+        $scope.error = 'Please, select your backup file';
         return;
       }
 
@@ -115,7 +114,7 @@ angular.module('copayApp.controllers').controller('ImportController',
         copay.Compatibility.importEncryptedWallet($rootScope.iden, backupText, $scope.password, {},
           function(err, wallet) {
             if (err) {
-              notification.error('Error', 'Could not read wallet. Please check your password');
+              $scope.error = 'Could not read wallet. Please check your password';
             } else {
               copay.Compatibility.deleteOldWallet(backupOldWallet);
               controllerUtils.installWalletHandlers($scope, wallet);
diff --git a/js/models/Identity.js b/js/models/Identity.js
index 536c90274..046aaf6b0 100644
--- a/js/models/Identity.js
+++ b/js/models/Identity.js
@@ -288,7 +288,18 @@ Identity.prototype.close = function(cb) {
 Identity.prototype.importEncryptedWallet = function(cypherText, password, opts, cb) {
   var crypto = opts.cryptoUtil || cryptoUtil;
   var obj = crypto.decrypt(password, cypherText);
-  if (!obj) return cb(new Error('Could not decrypt'));
+console.log('[Identity.js.290:obj:]',obj); //TODO
+
+  if (!obj) {
+    // 0.7.3 broken KDF
+    log.debug('Trying legacy encryption...');
+    var passphrase = crypto.kdf(password, 'mjuBtGybi/4=', 100);
+    obj = crypto.decrypt(passphrase, ejson);
+  }
+console.log('[Identity.js.300:obj:]',obj); //TOD
+
+  if (!obj) 
+    return cb(new Error('Could not decrypt'));
   try {
     obj = JSON.parse(obj);
   } catch (e) {
@@ -338,13 +349,21 @@ Identity.prototype.closeWallet = function(wallet, cb) {
   });
 };
 
-Identity.importFromEncryptedFullJson = function(str, password, opts, cb) {
+Identity.importFromEncryptedFullJson = function(ejson, password, opts, cb) {
   var crypto = opts.cryptoUtil || cryptoUtil;
 
-  var str = crypto.decrypt(password, str);
+  var str = crypto.decrypt(password, ejson);
+
   if (!str) {
-    return cb('BADSTR');
+    // 0.7.3 broken KDF
+    log.debug('Trying legacy encryption...');
+    var passphrase = crypto.kdf(password, 'mjuBtGybi/4=', 100);
+    str = crypto.decrypt(passphrase, ejson);
   }
+
+  if (!str)
+    return cb('BADSTR');
+
   return Identity.importFromFullJson(str, password, opts, cb);
 };
 
diff --git a/views/import.html b/views/import.html
index 8b3ec1f33..19e8d5068 100644
--- a/views/import.html
+++ b/views/import.html
@@ -10,6 +10,13 @@
       <div class="large-12 columns">
         <div class="panel">
           <form name="importForm" ng-submit="import(importForm)" novalidate>
+            <p class="text-warning size-12"
+              ng-show="error">
+              <i class="fi-x"></i> 
+              {{error|translate}}
+              </p>
+  
+ 
             <div ng-show="!is_iOS && !backupOldWallet">
               <legend for="backupFile" class="m10b"> 
                 <span translate>Choose backup file from your computer</span> <i class="fi-laptop"></i>