diff --git a/x/wasm/ibc_integration_test.go b/x/wasm/ibc_integration_test.go
index 42d367c089..4ff71dbe55 100644
--- a/x/wasm/ibc_integration_test.go
+++ b/x/wasm/ibc_integration_test.go
@@ -17,7 +17,7 @@ import (
 )
 
 func TestOnChanOpenInitVersion(t *testing.T) {
-	const startVersion = "v1"
+	const startVersion = "v2"
 	specs := map[string]struct {
 		contractRsp *wasmvmtypes.IBC3ChannelOpenResponse
 		expVersion  string
diff --git a/x/wasm/keeper/handler_plugin.go b/x/wasm/keeper/handler_plugin.go
index 7ac43a19b2..26086bc241 100644
--- a/x/wasm/keeper/handler_plugin.go
+++ b/x/wasm/keeper/handler_plugin.go
@@ -163,6 +163,13 @@ func (h IBCRawPacketHandler) DispatchMsg(ctx sdk.Context, _ sdk.AccAddress, cont
 		return nil, nil, sdkerrors.Wrapf(types.ErrEmpty, "ibc channel")
 	}
 
+	_, found := h.channelKeeper.GetNextSequenceSend(ctx, contractIBCPortID, contractIBCChannelID)
+	if !found {
+		return nil, nil, sdkerrors.Wrapf(channeltypes.ErrSequenceSendNotFound,
+			"source port: %s, source channel: %s", contractIBCPortID, contractIBCChannelID,
+		)
+	}
+
 	channelCap, ok := h.capabilityKeeper.GetCapability(ctx, host.ChannelCapabilityPath(contractIBCPortID, contractIBCChannelID))
 	if !ok {
 		return nil, nil, sdkerrors.Wrap(channeltypes.ErrChannelCapabilityNotFound, "module does not own channel capability")
diff --git a/x/wasm/keeper/handler_plugin_test.go b/x/wasm/keeper/handler_plugin_test.go
index e99e271373..d96a004b67 100644
--- a/x/wasm/keeper/handler_plugin_test.go
+++ b/x/wasm/keeper/handler_plugin_test.go
@@ -247,6 +247,7 @@ func TestIBCRawPacketHandler(t *testing.T) {
 				SourceChannel:    sourceChannel,
 				TimeoutHeight:    timeoutHeight,
 				TimeoutTimestamp: timeoutTimestamp,
+				Data:             data,
 			}
 			return 1, nil
 		},
@@ -292,6 +293,13 @@ func TestIBCRawPacketHandler(t *testing.T) {
 					return 0, false
 				},
 			},
+
+			capKeeper: wasmtesting.MockCapabilityKeeper{
+				GetCapabilityFn: func(ctx sdk.Context, name string) (*capabilitytypes.Capability, bool) {
+					return nil, false
+				},
+			},
+
 			expErr: channeltypes.ErrSequenceSendNotFound,
 		},
 		"capability not found returns error": {