diff --git a/pkg/tbtc/deduplicator.go b/pkg/tbtc/deduplicator.go
index a674cea370..be16d990d0 100644
--- a/pkg/tbtc/deduplicator.go
+++ b/pkg/tbtc/deduplicator.go
@@ -16,6 +16,9 @@ const (
 	// DKGResultHashCachePeriod is the time period the cache maintains
 	// the given DKG result hash.
 	DKGResultHashCachePeriod = 7 * 24 * time.Hour
+	// WalletClosedCachePeriod is the time period the cache maintains
+	// the given wallet closed hash.
+	WalletClosedCachePeriod = 7 * 24 * time.Hour
 )
 
 // deduplicator decides whether the given event should be handled by the
@@ -31,15 +34,18 @@ const (
 // Those events are supported:
 // - DKG started
 // - DKG result submitted
+// - Wallet closed
 type deduplicator struct {
 	dkgSeedCache       *cache.TimeCache
 	dkgResultHashCache *cache.TimeCache
+	walletClosedCache  *cache.TimeCache
 }
 
 func newDeduplicator() *deduplicator {
 	return &deduplicator{
 		dkgSeedCache:       cache.NewTimeCache(DKGSeedCachePeriod),
 		dkgResultHashCache: cache.NewTimeCache(DKGResultHashCachePeriod),
+		walletClosedCache:  cache.NewTimeCache(WalletClosedCachePeriod),
 	}
 }
 
@@ -90,3 +96,23 @@ func (d *deduplicator) notifyDKGResultSubmitted(
 	// proceed with the execution.
 	return false
 }
+
+func (d *deduplicator) notifyWalletClosed(
+	WalletID [32]byte,
+) bool {
+	d.walletClosedCache.Sweep()
+
+	// Use wallet ID converted to string as the cache key.
+	cacheKey := hex.EncodeToString(WalletID[:])
+
+	// If the key is not in the cache, that means the wallet closure was not
+	// handled yet and the client should proceed with the execution.
+	if !d.walletClosedCache.Has(cacheKey) {
+		d.walletClosedCache.Add(cacheKey)
+		return true
+	}
+
+	// Otherwise, the wallet closure is a duplicate and the client should not
+	// proceed with the execution.
+	return false
+}
diff --git a/pkg/tbtc/deduplicator_test.go b/pkg/tbtc/deduplicator_test.go
index 4fdeb5ec7c..b75432a8c0 100644
--- a/pkg/tbtc/deduplicator_test.go
+++ b/pkg/tbtc/deduplicator_test.go
@@ -9,8 +9,11 @@ import (
 	"github.com/keep-network/keep-common/pkg/cache"
 )
 
-const testDKGSeedCachePeriod = 1 * time.Second
-const testDKGResultHashCachePeriod = 1 * time.Second
+const (
+	testDKGSeedCachePeriod       = 1 * time.Second
+	testDKGResultHashCachePeriod = 1 * time.Second
+	testWalletClosedCachePeriod  = 1 * time.Second
+)
 
 func TestNotifyDKGStarted(t *testing.T) {
 	deduplicator := deduplicator{
@@ -112,3 +115,39 @@ func TestNotifyDKGResultSubmitted(t *testing.T) {
 		t.Fatal("should be allowed to process")
 	}
 }
+
+func TestNotifyWalletClosed(t *testing.T) {
+	deduplicator := deduplicator{
+		walletClosedCache: cache.NewTimeCache(testWalletClosedCachePeriod),
+	}
+
+	wallet1 := [32]byte{1}
+	wallet2 := [32]byte{2}
+
+	// Add the first wallet ID.
+	canProcess := deduplicator.notifyWalletClosed(wallet1)
+	if !canProcess {
+		t.Fatal("should be allowed to process")
+	}
+
+	// Add the second wallet ID.
+	canProcess = deduplicator.notifyWalletClosed(wallet2)
+	if !canProcess {
+		t.Fatal("should be allowed to process")
+	}
+
+	// Add the first wallet ID before caching period elapses.
+	canProcess = deduplicator.notifyWalletClosed(wallet1)
+	if canProcess {
+		t.Fatal("should not be allowed to process")
+	}
+
+	// Wait until caching period elapses.
+	time.Sleep(testWalletClosedCachePeriod)
+
+	// Add the first wallet ID again.
+	canProcess = deduplicator.notifyWalletClosed(wallet1)
+	if !canProcess {
+		t.Fatal("should be allowed to process")
+	}
+}
diff --git a/pkg/tbtc/tbtc.go b/pkg/tbtc/tbtc.go
index 937851e98a..a341bf24f0 100644
--- a/pkg/tbtc/tbtc.go
+++ b/pkg/tbtc/tbtc.go
@@ -266,7 +266,17 @@ func Initialize(
 
 	_ = chain.OnWalletClosed(func(event *WalletClosedEvent) {
 		go func() {
-			// TODO: Most likely event deduplication is needed.
+			if ok := deduplicator.notifyWalletClosed(
+				event.WalletID,
+			); !ok {
+				logger.Warnf(
+					"Wallet closure for wallet with ID [0x%x] at block [%v] has"+
+						"been already processed",
+					event.WalletID,
+					event.BlockNumber,
+				)
+				return
+			}
 
 			logger.Infof(
 				"Wallet with ID [0x%x] has been closed at block [%v]",