diff --git a/sequencer/finalizer.go b/sequencer/finalizer.go
index 674c0ea5d2..cce9458b16 100644
--- a/sequencer/finalizer.go
+++ b/sequencer/finalizer.go
@@ -374,7 +374,7 @@ func (f *finalizer) processTransaction(ctx context.Context, tx *TxTracker) error
 	}
 	result, err := f.executor.ProcessBatch(ctx, f.processRequest, false)
 	if err != nil {
-		log.Errorf("failed to process transaction, err: %s", err)
+		log.Errorf("failed to process transaction, isClaim: %v, err: %s", tx.IsClaim, err)
 		return err
 	}
 
@@ -461,8 +461,8 @@ func (f *finalizer) handleTransactionError(ctx context.Context, result *state.Pr
 				log.Errorf("failed to update status to failed in the pool for tx: %s, err: %s", tx.Hash.String(), err)
 			}
 		}()
-	} else if executor.IsIntrinsicError(errorCode) {
-		log.Errorf("intrinsic error, moving tx with Hash: %s to NOT READY, to not ready, err: %s", tx.Hash, txResponse.RomError)
+	} else if (executor.IsInvalidNonceError(errorCode) || executor.IsInvalidBalanceError(errorCode)) && !tx.IsClaim {
+		log.Errorf("intrinsic error, moving tx with Hash: %s to NOT READY, err: %s", tx.Hash, txResponse.RomError)
 		var (
 			nonce   *uint64
 			balance *big.Int
@@ -480,6 +480,16 @@ func (f *finalizer) handleTransactionError(ctx context.Context, result *state.Pr
 			}
 		}
 		metrics.WorkerProcessingTime(time.Since(start))
+	} else {
+		// Delete the transaction from the efficiency list
+		f.worker.DeleteTx(tx.Hash, tx.From)
+		log.Debug("tx deleted from efficiency list", "txHash", tx.Hash.String(), "from", tx.From.Hex(), "isClaim", tx.IsClaim)
+
+		// Update the status of the transaction to failed
+		err := f.dbManager.UpdateTxStatus(ctx, tx.Hash, pool.TxStatusFailed, false)
+		if err != nil {
+			log.Errorf("failed to update status to failed in the pool for tx: %s, err: %s", tx.Hash.String(), err)
+		}
 	}
 }
 
diff --git a/sequencer/finalizer_test.go b/sequencer/finalizer_test.go
index 27f13ec5af..fe78d2e4bf 100644
--- a/sequencer/finalizer_test.go
+++ b/sequencer/finalizer_test.go
@@ -238,7 +238,7 @@ func TestFinalizer_handleTransactionError(t *testing.T) {
 		},
 		{
 			name:             "IntrinsicError",
-			error:            pb.RomError(executor.ROM_ERROR_INTRINSIC_INVALID_SIGNATURE),
+			error:            pb.RomError(executor.ROM_ERROR_INTRINSIC_INVALID_NONCE),
 			expectedMoveCall: true,
 		},
 	}
@@ -246,7 +246,7 @@ func TestFinalizer_handleTransactionError(t *testing.T) {
 		t.Run(tc.name, func(t *testing.T) {
 			// arrange
 			if tc.expectedDeleteCall {
-				workerMock.On("DeleteTx", oldHash, sender).Return().Once()
+				workerMock.On("DeleteTx", oldHash, sender).Return()
 				dbManagerMock.On("UpdateTxStatus", ctx, oldHash, pool.TxStatusFailed, false).Return(nil).Once()
 				dbManagerMock.On("UpdateTxStatus", ctx, oldHash, pool.TxStatusInvalid, false).Return(nil).Once()
 				dbManagerMock.On("DeleteTransactionFromPool", ctx, tx.Hash).Return(nil).Once()
diff --git a/state/runtime/executor/errors.go b/state/runtime/executor/errors.go
index 9c3ef5a0c0..91b4dcb3b9 100644
--- a/state/runtime/executor/errors.go
+++ b/state/runtime/executor/errors.go
@@ -229,6 +229,16 @@ func IsIntrinsicError(error pb.RomError) bool {
 	return int32(error) >= ROM_ERROR_INTRINSIC_INVALID_SIGNATURE && int32(error) <= ROM_ERROR_INTRINSIC_TX_GAS_OVERFLOW
 }
 
+// IsInvalidNonceError indicates if the error is due to a invalid nonce
+func IsInvalidNonceError(error pb.RomError) bool {
+	return int32(error) == ROM_ERROR_INTRINSIC_INVALID_NONCE
+}
+
+// IsInvalidBalanceError indicates if the error is due to a invalid balance
+func IsInvalidBalanceError(error pb.RomError) bool {
+	return int32(error) == ROM_ERROR_INTRINSIC_INVALID_BALANCE
+}
+
 // ExecutorErr returns an instance of error related to the ExecutorError
 func ExecutorErr(errorCode pb.ExecutorError) error {
 	e := int32(errorCode)