diff --git a/Cargo.lock b/Cargo.lock
index 090c0ae3f7d..27f61ec5a61 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2098,7 +2098,7 @@ dependencies = [
 [[package]]
 name = "sphinx"
 version = "0.1.0"
-source = "git+https://github.com/nymtech/sphinx?rev=47c4fbba8272c4aee03cc8165220f33572a96602#47c4fbba8272c4aee03cc8165220f33572a96602"
+source = "git+https://github.com/nymtech/sphinx?rev=c3ba1447d61d6eb900fcdea0c20b3070a22bf11a#c3ba1447d61d6eb900fcdea0c20b3070a22bf11a"
 dependencies = [
  "aes-ctr",
  "arrayref",
diff --git a/common/clients/mix-client/Cargo.toml b/common/clients/mix-client/Cargo.toml
index ccfba9d9e36..dcd16d33d5d 100644
--- a/common/clients/mix-client/Cargo.toml
+++ b/common/clients/mix-client/Cargo.toml
@@ -18,6 +18,6 @@ addressing = {path = "../../addressing"}
 topology = {path = "../../topology"}
 
 ## will be moved to proper dependencies once released
-sphinx = { git = "https://github.com/nymtech/sphinx", rev="47c4fbba8272c4aee03cc8165220f33572a96602" }
+sphinx = { git = "https://github.com/nymtech/sphinx", rev="c3ba1447d61d6eb900fcdea0c20b3070a22bf11a" }
 # sphinx = { path = "../../../../sphinx"}
 
diff --git a/common/clients/provider-client/Cargo.toml b/common/clients/provider-client/Cargo.toml
index 07c368f9d6f..1c1d87b7b11 100644
--- a/common/clients/provider-client/Cargo.toml
+++ b/common/clients/provider-client/Cargo.toml
@@ -16,4 +16,4 @@ tokio = { version = "0.2", features = ["full"] }
 sfw-provider-requests = { path = "../../../sfw-provider/sfw-provider-requests" }
 
 ## will be moved to proper dependencies once released
-sphinx = { git = "https://github.com/nymtech/sphinx", rev="47c4fbba8272c4aee03cc8165220f33572a96602" }
+sphinx = { git = "https://github.com/nymtech/sphinx", rev="c3ba1447d61d6eb900fcdea0c20b3070a22bf11a" }
diff --git a/common/healthcheck/Cargo.toml b/common/healthcheck/Cargo.toml
index 834a72c65e2..aaacb88d660 100644
--- a/common/healthcheck/Cargo.toml
+++ b/common/healthcheck/Cargo.toml
@@ -25,7 +25,7 @@ sfw-provider-requests = { path = "../../sfw-provider/sfw-provider-requests" }
 topology = {path = "../topology" }
 
 ## will be moved to proper dependencies once released
-sphinx = { git = "https://github.com/nymtech/sphinx", rev="47c4fbba8272c4aee03cc8165220f33572a96602" }
+sphinx = { git = "https://github.com/nymtech/sphinx", rev="c3ba1447d61d6eb900fcdea0c20b3070a22bf11a" }
 # sphinx = { path = "../../../sphinx"}
 
 [dev-dependencies]
diff --git a/common/topology/Cargo.toml b/common/topology/Cargo.toml
index 6e0e65bf508..905df9f2da2 100644
--- a/common/topology/Cargo.toml
+++ b/common/topology/Cargo.toml
@@ -20,5 +20,5 @@ addressing = {path = "../addressing"}
 version-checker = {path = "../version-checker" }
 
 ## will be moved to proper dependencies once released
-sphinx = { git = "https://github.com/nymtech/sphinx", rev="47c4fbba8272c4aee03cc8165220f33572a96602" }
+sphinx = { git = "https://github.com/nymtech/sphinx", rev="c3ba1447d61d6eb900fcdea0c20b3070a22bf11a" }
 # sphinx = { path = "../../../sphinx"}
diff --git a/mixnode/Cargo.toml b/mixnode/Cargo.toml
index d02f8bcc225..52db3fa9b6b 100644
--- a/mixnode/Cargo.toml
+++ b/mixnode/Cargo.toml
@@ -22,7 +22,7 @@ addressing = {path = "../common/addressing" }
 directory-client = { path = "../common/clients/directory-client" }
 
 ## will be moved to proper dependencies once released
-sphinx = { git = "https://github.com/nymtech/sphinx", rev="47c4fbba8272c4aee03cc8165220f33572a96602" }
+sphinx = { git = "https://github.com/nymtech/sphinx", rev="c3ba1447d61d6eb900fcdea0c20b3070a22bf11a" }
 
 [build-dependencies]
 built = "0.3.2"
diff --git a/mixnode/src/node/mod.rs b/mixnode/src/node/mod.rs
index 1ae4b6e65db..78f49f33f13 100644
--- a/mixnode/src/node/mod.rs
+++ b/mixnode/src/node/mod.rs
@@ -39,6 +39,7 @@ impl Config {
 pub enum MixProcessingError {
     SphinxRecoveryError,
     ReceivedFinalHopError,
+    SphinxProcessingError,
 }
 
 impl From<sphinx::ProcessingError> for MixProcessingError {
@@ -115,10 +116,14 @@ impl PacketProcessor {
         let packet = SphinxPacket::from_bytes(packet_data.to_vec())?;
         let (next_packet, next_hop_address, delay) =
             match packet.process(processing_data.secret_key) {
-                ProcessedPacket::ProcessedPacketForwardHop(packet, address, delay) => {
+                Ok(ProcessedPacket::ProcessedPacketForwardHop(packet, address, delay)) => {
                     (packet, address, delay)
                 }
-                _ => return Err(MixProcessingError::ReceivedFinalHopError),
+                Ok(_) => return Err(MixProcessingError::ReceivedFinalHopError),
+                Err(e) => {
+                    warn!("Failed to unwrap Sphinx pakcet: {:?}", e);
+                    return Err(MixProcessingError::SphinxProcessingError);
+                }
             };
 
         let next_mix = MixPeer::new(next_hop_address);
diff --git a/nym-client/Cargo.toml b/nym-client/Cargo.toml
index 24f30726df8..eade92dd4b0 100644
--- a/nym-client/Cargo.toml
+++ b/nym-client/Cargo.toml
@@ -40,7 +40,7 @@ sfw-provider-requests = { path = "../sfw-provider/sfw-provider-requests" }
 topology = {path = "../common/topology" }
 
 ## will be moved to proper dependencies once released
-sphinx = { git = "https://github.com/nymtech/sphinx", rev="47c4fbba8272c4aee03cc8165220f33572a96602" }
+sphinx = { git = "https://github.com/nymtech/sphinx", rev="c3ba1447d61d6eb900fcdea0c20b3070a22bf11a" }
 # sphinx = { path = "../../sphinx"}
 
 # putting this explicitly below everything and most likely, the next time we look into it, it will already have a proper release
diff --git a/sfw-provider/Cargo.toml b/sfw-provider/Cargo.toml
index bce8917ad10..7bea6173d0e 100644
--- a/sfw-provider/Cargo.toml
+++ b/sfw-provider/Cargo.toml
@@ -29,7 +29,7 @@ directory-client = { path = "../common/clients/directory-client" }
 sfw-provider-requests = { path = "./sfw-provider-requests" }
 
 ## will be moved to proper dependencies once released
-sphinx = { git = "https://github.com/nymtech/sphinx", rev="47c4fbba8272c4aee03cc8165220f33572a96602" }
+sphinx = { git = "https://github.com/nymtech/sphinx", rev="c3ba1447d61d6eb900fcdea0c20b3070a22bf11a" }
 
 [build-dependencies]
 built = "0.3.2"
diff --git a/sfw-provider/sfw-provider-requests/Cargo.toml b/sfw-provider/sfw-provider-requests/Cargo.toml
index 0f31948e501..9b207791e38 100644
--- a/sfw-provider/sfw-provider-requests/Cargo.toml
+++ b/sfw-provider/sfw-provider-requests/Cargo.toml
@@ -7,4 +7,4 @@ edition = "2018"
 # See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
 
 [dependencies]
-sphinx = { git = "https://github.com/nymtech/sphinx", rev="47c4fbba8272c4aee03cc8165220f33572a96602" }
+sphinx = { git = "https://github.com/nymtech/sphinx", rev="c3ba1447d61d6eb900fcdea0c20b3070a22bf11a" }
diff --git a/sfw-provider/src/provider/mix_handling/mod.rs b/sfw-provider/src/provider/mix_handling/mod.rs
index 1670311dd16..c7a4e8cc02d 100644
--- a/sfw-provider/src/provider/mix_handling/mod.rs
+++ b/sfw-provider/src/provider/mix_handling/mod.rs
@@ -1,5 +1,6 @@
 use crate::provider::storage::StoreData;
 use crypto::identity::DummyMixIdentityPrivateKey;
+use log::warn;
 use sphinx::{ProcessedPacket, SphinxPacket};
 use std::path::PathBuf;
 use std::sync::{Arc, RwLock};
@@ -8,11 +9,12 @@ use std::sync::{Arc, RwLock};
 // DUPLICATE WITH MIXNODE CODE!!!
 #[derive(Debug)]
 pub enum MixProcessingError {
-    SphinxRecoveryError,
-    ReceivedForwardHopError,
+    FileIOFailure,
     InvalidPayload,
     NonMatchingRecipient,
-    FileIOFailure,
+    ReceivedForwardHopError,
+    SphinxRecoveryError,
+    SphinxProcessingError,
 }
 
 impl From<sphinx::ProcessingError> for MixProcessingError {
@@ -63,10 +65,14 @@ impl MixPacketProcessor {
         let read_processing_data = processing_data.read().unwrap();
         let (client_address, client_surb_id, payload) =
             match packet.process(read_processing_data.secret_key.as_scalar()) {
-                ProcessedPacket::ProcessedPacketFinalHop(client_address, surb_id, payload) => {
+                Ok(ProcessedPacket::ProcessedPacketFinalHop(client_address, surb_id, payload)) => {
                     (client_address, surb_id, payload)
                 }
-                _ => return Err(MixProcessingError::ReceivedForwardHopError),
+                Ok(_) => return Err(MixProcessingError::ReceivedForwardHopError),
+                Err(e) => {
+                    warn!("Error unwrapping Sphinx packet: {:?}", e);
+                    return Err(MixProcessingError::SphinxProcessingError);
+                }
             };
 
         // TODO: should provider try to be recovering plaintext? this would potentially make client retrieve messages of non-constant length,