diff --git a/core/contracts/MezoAllocator.sol b/core/contracts/MezoAllocator.sol
index edf078132..02d194388 100644
--- a/core/contracts/MezoAllocator.sol
+++ b/core/contracts/MezoAllocator.sol
@@ -91,16 +91,20 @@ contract MezoAllocator is IDispatcher, Ownable2Step {
     event MaintainerAdded(address indexed maintainer);
     /// @notice Emitted when the maintainer address is updated.
     event MaintainerRemoved(address indexed maintainer);
-    /// @notice Reverts if the caller is not an authorized account.
-    error NotAuthorized();
+    /// @notice Emitted when tBTC is released from MezoPortal.
+    event DepositReleased(uint256 indexed depositId, uint256 amount);
     /// @notice Reverts if the caller is not a maintainer.
+    error CallerNotMaintainer();
+    /// @notice Reverts if the caller is not the stBTC contract.
+    error CallerNotStbtc();
+    /// @notice Reverts if the maintainer is not registered.
     error MaintainerNotRegistered();
-    /// @notice Reverts if the caller is already a maintainer.
+    /// @notice Reverts if the maintainer has been already registered.
     error MaintainerAlreadyRegistered();
 
     modifier onlyMaintainer() {
         if (!isMaintainer[msg.sender]) {
-            revert NotAuthorized();
+            revert CallerNotMaintainer();
         }
         _;
     }
@@ -169,7 +173,7 @@ contract MezoAllocator is IDispatcher, Ownable2Step {
     ///         MezoPortal for a given deposit id.
     /// @param amount Amount of tBTC to withdraw.
     function withdraw(uint256 amount) external {
-        if (msg.sender != address(stbtc)) revert NotAuthorized();
+        if (msg.sender != address(stbtc)) revert CallerNotStbtc();
 
         emit DepositWithdrawn(depositId, amount);
         mezoPortal.withdraw(address(tbtc), depositId, uint96(amount));
@@ -178,6 +182,20 @@ contract MezoAllocator is IDispatcher, Ownable2Step {
         tbtc.safeTransfer(address(stbtc), amount);
     }
 
+    /// @notice Releases deposit in full from MezoPortal.
+    /// @dev This is a special function that can be used to migrate funds during
+    ///      allocator upgrade or in case of emergencies.
+    function releaseDeposit() external onlyOwner {
+        uint96 amount = mezoPortal
+            .getDeposit(address(this), address(tbtc), depositId)
+            .balance;
+
+        emit DepositReleased(depositId, amount);
+        depositBalance = 0;
+        mezoPortal.withdraw(address(tbtc), depositId, amount);
+        tbtc.safeTransfer(address(stbtc), tbtc.balanceOf(address(this)));
+    }
+
     /// @notice Updates the maintainer address.
     /// @param maintainerToAdd Address of the new maintainer.
     function addMaintainer(address maintainerToAdd) external onlyOwner {
@@ -214,7 +232,7 @@ contract MezoAllocator is IDispatcher, Ownable2Step {
     }
 
     /// @notice Returns the total amount of tBTC allocated to MezoPortal.
-    function totalAssets() external view returns (uint256 totalAmount) {
+    function totalAssets() external view returns (uint256) {
         return depositBalance;
     }
 
diff --git a/core/deploy/12_mezo_allocator_update_maintainer.ts b/core/deploy/12_mezo_allocator_update_maintainer.ts
index 1be91a2a9..3d1bd2c5f 100644
--- a/core/deploy/12_mezo_allocator_update_maintainer.ts
+++ b/core/deploy/12_mezo_allocator_update_maintainer.ts
@@ -20,5 +20,5 @@ const func: DeployFunction = async (hre: HardhatRuntimeEnvironment) => {
 
 export default func
 
-func.tags = ["MezoAllocatorUpdateMaintainer"]
 func.dependencies = ["MezoAllocator"]
+func.tags = ["MezoAllocatorAddMaintainer"]
diff --git a/core/test/MezoAllocator.test.ts b/core/test/MezoAllocator.test.ts
index 5d012d664..23467a497 100644
--- a/core/test/MezoAllocator.test.ts
+++ b/core/test/MezoAllocator.test.ts
@@ -65,7 +65,7 @@ describe("MezoAllocator", () => {
       it("should revert", async () => {
         await expect(
           mezoAllocator.connect(thirdParty).allocate(),
-        ).to.be.revertedWithCustomError(mezoAllocator, "NotAuthorized")
+        ).to.be.revertedWithCustomError(mezoAllocator, "CallerNotMaintainer")
       })
     })
 
@@ -79,8 +79,10 @@ describe("MezoAllocator", () => {
         })
 
         it("should deposit and transfer tBTC to Mezo Portal", async () => {
-          expect(await tbtc.balanceOf(await mezoPortal.getAddress())).to.equal(
-            to1e18(6),
+          await expect(tx).to.changeTokenBalances(
+            tbtc,
+            [await mezoPortal.getAddress()],
+            [to1e18(6)],
           )
         })
 
@@ -95,6 +97,11 @@ describe("MezoAllocator", () => {
           expect(actualDepositId).to.equal(1)
         })
 
+        it("should increase tracked deposit balance amount", async () => {
+          const depositBalance = await mezoAllocator.depositBalance()
+          expect(depositBalance).to.equal(to1e18(6))
+        })
+
         it("should emit DepositAllocated event", async () => {
           await expect(tx)
             .to.emit(mezoAllocator, "DepositAllocated")
@@ -153,7 +160,7 @@ describe("MezoAllocator", () => {
       it("should revert", async () => {
         await expect(
           mezoAllocator.connect(thirdParty).withdraw(1n),
-        ).to.be.revertedWithCustomError(mezoAllocator, "NotAuthorized")
+        ).to.be.revertedWithCustomError(mezoAllocator, "CallerNotStbtc")
       })
     })
 
@@ -201,9 +208,11 @@ describe("MezoAllocator", () => {
           })
 
           it("should decrease Mezo Portal balance", async () => {
-            expect(
-              await tbtc.balanceOf(await mezoPortal.getAddress()),
-            ).to.equal(to1e18(3))
+            await expect(tx).to.changeTokenBalances(
+              tbtc,
+              [await mezoPortal.getAddress()],
+              [-to1e18(2)],
+            )
           })
         })
 
@@ -232,9 +241,11 @@ describe("MezoAllocator", () => {
           })
 
           it("should decrease Mezo Portal balance", async () => {
-            expect(
-              await tbtc.balanceOf(await mezoPortal.getAddress()),
-            ).to.equal(0)
+            await expect(tx).to.changeTokenBalances(
+              tbtc,
+              [await mezoPortal.getAddress()],
+              [-to1e18(3)],
+            )
           })
         })
       })
@@ -383,4 +394,50 @@ describe("MezoAllocator", () => {
       })
     })
   })
+
+  describe("releaseDeposit", () => {
+    beforeAfterSnapshotWrapper()
+
+    context("when a caller is not governance", () => {
+      it("should revert", async () => {
+        await expect(
+          mezoAllocator.connect(thirdParty).releaseDeposit(),
+        ).to.be.revertedWithCustomError(
+          mezoAllocator,
+          "OwnableUnauthorizedAccount",
+        )
+      })
+    })
+
+    context("when the caller is governance", () => {
+      context("when there is a deposit", () => {
+        let tx: ContractTransactionResponse
+
+        before(async () => {
+          await tbtc.mint(await stbtc.getAddress(), to1e18(5))
+          await mezoAllocator.connect(maintainer).allocate()
+          tx = await mezoAllocator.connect(governance).releaseDeposit()
+        })
+
+        it("should emit DepositReleased event", async () => {
+          await expect(tx)
+            .to.emit(mezoAllocator, "DepositReleased")
+            .withArgs(1, to1e18(5))
+        })
+
+        it("should decrease tracked deposit balance amount to zero", async () => {
+          const depositBalance = await mezoAllocator.depositBalance()
+          expect(depositBalance).to.equal(0)
+        })
+
+        it("should decrease Mezo Portal balance", async () => {
+          await expect(tx).to.changeTokenBalances(
+            tbtc,
+            [mezoPortal, stbtc],
+            [-to1e18(5), to1e18(5)],
+          )
+        })
+      })
+    })
+  })
 })