diff --git a/core/src/main/java/bisq/core/grpc/ApiStatus.java b/core/src/main/java/bisq/core/grpc/ApiStatus.java
index a241ba75a51..675aaf51a9b 100644
--- a/core/src/main/java/bisq/core/grpc/ApiStatus.java
+++ b/core/src/main/java/bisq/core/grpc/ApiStatus.java
@@ -28,21 +28,14 @@
  */
 enum ApiStatus {
 
-    INCORRECT_OLD_WALLET_PASSWORD(Status.INVALID_ARGUMENT, "incorrect old password"),
     INCORRECT_WALLET_PASSWORD(Status.INVALID_ARGUMENT, "incorrect password"),
 
-    INTERNAL(Status.INTERNAL, "internal server error"),
-
     OK(Status.OK, null),
 
-    UNKNOWN(Status.UNKNOWN, "unknown"),
-
     WALLET_ALREADY_LOCKED(Status.FAILED_PRECONDITION, "wallet is already locked"),
 
     WALLET_ENCRYPTER_NOT_AVAILABLE(Status.FAILED_PRECONDITION, "wallet encrypter is not available"),
 
-    WALLET_IS_ENCRYPTED(Status.FAILED_PRECONDITION, "wallet is encrypted with a password"),
-
     WALLET_NOT_ENCRYPTED(Status.FAILED_PRECONDITION, "wallet is not encrypted with a password"),
     WALLET_NOT_AVAILABLE(Status.UNAVAILABLE, "wallet is not available");
 
diff --git a/core/src/main/java/bisq/core/grpc/CoreWalletService.java b/core/src/main/java/bisq/core/grpc/CoreWalletService.java
index 4aa4fef25d2..36e47195d22 100644
--- a/core/src/main/java/bisq/core/grpc/CoreWalletService.java
+++ b/core/src/main/java/bisq/core/grpc/CoreWalletService.java
@@ -50,51 +50,45 @@ public long getAvailableBalance() {
         return balance.getValue();
     }
 
-    public Tuple2<Boolean, ApiStatus> setWalletPassword(String password, String newPassword) {
+    public void setWalletPassword(String password, String newPassword) {
         try {
             if (!walletsManager.areWalletsAvailable())
-                return new Tuple2<>(false, WALLET_NOT_AVAILABLE);
+                throw new IllegalStateException("wallet is not yet available");
 
             KeyCrypterScrypt keyCrypterScrypt = walletsManager.getKeyCrypterScrypt();
             if (keyCrypterScrypt == null)
-                return new Tuple2<>(false, WALLET_ENCRYPTER_NOT_AVAILABLE);
+                throw new IllegalStateException("wallet encrypter is not available");
 
             if (newPassword != null && !newPassword.isEmpty()) {
                 // TODO Validate new password before replacing old password.
                 if (!walletsManager.areWalletsEncrypted())
-                    return new Tuple2<>(false, WALLET_NOT_ENCRYPTED);
+                    throw new IllegalStateException("wallet is not encrypted with a password");
 
                 KeyParameter aesKey = keyCrypterScrypt.deriveKey(password);
                 if (!walletsManager.checkAESKey(aesKey))
-                    return new Tuple2<>(false, INCORRECT_OLD_WALLET_PASSWORD);
+                    throw new IllegalStateException("incorrect old password");
 
                 walletsManager.decryptWallets(aesKey);
                 aesKey = keyCrypterScrypt.deriveKey(newPassword);
                 walletsManager.encryptWallets(keyCrypterScrypt, aesKey);
-                return new Tuple2<>(true, OK);
             }
 
             if (walletsManager.areWalletsEncrypted())
-                return new Tuple2<>(false, WALLET_IS_ENCRYPTED);
+                throw new IllegalStateException("wallet is encrypted with a password");
 
             // TODO Validate new password.
             KeyParameter aesKey = keyCrypterScrypt.deriveKey(password);
             walletsManager.encryptWallets(keyCrypterScrypt, aesKey);
-            return new Tuple2<>(true, OK);
         } catch (Throwable t) {
-            // TODO Derive new ApiStatus codes from server stack traces.
             t.printStackTrace();
-            return new Tuple2<>(false, INTERNAL);
+            throw new IllegalStateException(t);
         }
     }
 
     public Tuple2<Boolean, ApiStatus> lockWallet() {
         if (tempLockWalletPassword != null) {
-            Tuple2<Boolean, ApiStatus> encrypted = setWalletPassword(tempLockWalletPassword, null);
+            setWalletPassword(tempLockWalletPassword, null);
             tempLockWalletPassword = null;
-            if (!encrypted.second.equals(OK))
-                return encrypted;
-
             return new Tuple2<>(true, OK);
         }
         return new Tuple2<>(false, WALLET_ALREADY_LOCKED);
diff --git a/core/src/main/java/bisq/core/grpc/GrpcWalletService.java b/core/src/main/java/bisq/core/grpc/GrpcWalletService.java
index a9766154274..fc301c5b464 100644
--- a/core/src/main/java/bisq/core/grpc/GrpcWalletService.java
+++ b/core/src/main/java/bisq/core/grpc/GrpcWalletService.java
@@ -44,16 +44,16 @@ public void getBalance(GetBalanceRequest req, StreamObserver<GetBalanceReply> re
     @Override
     public void setWalletPassword(SetWalletPasswordRequest req,
                                   StreamObserver<SetWalletPasswordReply> responseObserver) {
-        var result = walletService.setWalletPassword(req.getPassword(), req.getNewPassword());
-        if (!result.second.equals(ApiStatus.OK)) {
-            StatusRuntimeException ex = new StatusRuntimeException(result.second.getGrpcStatus()
-                    .withDescription(result.second.getDescription()));
+        try {
+            walletService.setWalletPassword(req.getPassword(), req.getNewPassword());
+            var reply = SetWalletPasswordReply.newBuilder().build();
+            responseObserver.onNext(reply);
+            responseObserver.onCompleted();
+        } catch (IllegalStateException cause) {
+            var ex = new StatusRuntimeException(Status.UNKNOWN.withDescription(cause.getMessage()));
             responseObserver.onError(ex);
             throw ex;
         }
-        var reply = SetWalletPasswordReply.newBuilder().build();
-        responseObserver.onNext(reply);
-        responseObserver.onCompleted();
     }
 
     @Override