diff --git a/app/src/main/java/to/bitkit/repositories/BackupRepo.kt b/app/src/main/java/to/bitkit/repositories/BackupRepo.kt
index 0d681c7487..51fa0f0b7b 100644
--- a/app/src/main/java/to/bitkit/repositories/BackupRepo.kt
+++ b/app/src/main/java/to/bitkit/repositories/BackupRepo.kt
@@ -44,6 +44,7 @@ import to.bitkit.di.IoDispatcher
 import to.bitkit.di.json
 import to.bitkit.ext.formatPlural
 import to.bitkit.ext.nowMillis
+import to.bitkit.ext.runSuspendCatching
 import to.bitkit.models.ActivityBackupV1
 import to.bitkit.models.BackupCategory
 import to.bitkit.models.BackupItemStatus
@@ -435,7 +436,11 @@ class BackupRepo @Inject constructor(
             it.copy(running = true, required = backupRequired)
         }
 
-        vssBackupClient.putObject(key = category.name, data = getBackupDataBytes(category))
+        val data = runSuspendCatching { getBackupDataBytes(category) }
+            .onFailure { markBackupFailed(category, backupRequired, it) }
+            .getOrNull() ?: return@withContext
+
+        vssBackupClient.putObject(key = category.name, data = data)
             .onSuccess {
                 runningBackups -= category
                 failedBackupRequired -= category
@@ -447,18 +452,20 @@ class BackupRepo @Inject constructor(
                 }
                 Logger.info("Backup succeeded for: '$category'", context = TAG)
             }
-            .onFailure { e ->
-                runningBackups -= category
-                cacheStore.updateBackupStatus(category) {
-                    if (it.required == backupRequired) {
-                        failedBackupRequired[category] = backupRequired
-                    } else {
-                        failedBackupRequired -= category
-                    }
-                    it.copy(running = false)
-                }
-                Logger.error("Backup failed for: '$category'", e, context = TAG)
+            .onFailure { markBackupFailed(category, backupRequired, it) }
+    }
+
+    private suspend fun markBackupFailed(category: BackupCategory, backupRequired: Long, e: Throwable) {
+        runningBackups -= category
+        cacheStore.updateBackupStatus(category) {
+            if (it.required == backupRequired) {
+                failedBackupRequired[category] = backupRequired
+            } else {
+                failedBackupRequired -= category
             }
+            it.copy(running = false)
+        }
+        Logger.error("Backup failed for: '$category'", e, context = TAG)
     }
 
     private suspend fun getBackupDataBytes(category: BackupCategory): ByteArray = when (category) {
diff --git a/app/src/test/java/to/bitkit/repositories/BackupRepoTest.kt b/app/src/test/java/to/bitkit/repositories/BackupRepoTest.kt
index 84bafb8348..6a9078c298 100644
--- a/app/src/test/java/to/bitkit/repositories/BackupRepoTest.kt
+++ b/app/src/test/java/to/bitkit/repositories/BackupRepoTest.kt
@@ -40,6 +40,7 @@ import to.bitkit.services.PaykitSdkService
 import to.bitkit.test.BaseUnitTest
 import to.bitkit.utils.AppError
 import javax.inject.Provider
+import kotlin.test.assertFalse
 import kotlin.test.assertTrue
 import kotlin.time.Clock
 import kotlin.time.ExperimentalTime
@@ -111,6 +112,35 @@ class BackupRepoTest : BaseUnitTest() {
         verify(settingsStore, never()).update(any())
     }
 
+    @Test
+    fun `automatic wallet backup marks failure when Paykit snapshot fails`() = test {
+        whenever { privatePaykitRepo.backupSnapshot() }
+            .thenReturn(Result.failure(BackupRepoTestError("paykit session missing capabilities")))
+        val backupStatuses = MutableStateFlow(
+            mapOf(
+                BackupCategory.WALLET to BackupItemStatus(
+                    synced = 1_000,
+                    required = 2_000,
+                ),
+            )
+        )
+        val allowWalletClear = CompletableDeferred<Unit>().apply { complete(Unit) }
+        stubBackupStatuses(backupStatuses, allowWalletClear) {}
+        stubBackupObservers()
+
+        try {
+            sut.startObservingBackups()
+            runCurrent()
+            advanceTimeBy(5_000)
+            runCurrent()
+
+            verify(vssBackupClient, never()).putObject(eq(BackupCategory.WALLET.name), any())
+            assertFalse(backupStatuses.value.getValue(BackupCategory.WALLET).running)
+        } finally {
+            sut.stopObservingBackups()
+        }
+    }
+
     @Test
     fun `start observing backs up stale required status after clearing running flag`() = test {
         val backupStatuses = MutableStateFlow(
diff --git a/changelog.d/next/1092.fixed.md b/changelog.d/next/1092.fixed.md
new file mode 100644
index 0000000000..b4fc5af7a6
--- /dev/null
+++ b/changelog.d/next/1092.fixed.md
@@ -0,0 +1 @@
+Fixed a crash during automatic wallet backup when Paykit state could not be read.