diff --git a/src/contracts.rs b/src/contracts.rs
index b94e84b6..d51059e1 100644
--- a/src/contracts.rs
+++ b/src/contracts.rs
@@ -48,6 +48,7 @@ pub trait SwapCoin {
     fn get_contract_tx(&self) -> Transaction;
     fn get_contract_redeemscript(&self) -> Script;
     fn get_timelock_pubkey(&self) -> PublicKey;
+    fn get_timelock(&self) -> u16;
     fn get_hashlock_pubkey(&self) -> PublicKey;
     fn get_hashvalue(&self) -> Hash160;
     fn get_funding_amount(&self) -> u64;
@@ -470,6 +471,10 @@ macro_rules! add_simple_swapcoin_get_functions {
             read_timelock_pubkey_from_contract(&self.contract_redeemscript).unwrap()
         }
 
+        fn get_timelock(&self) -> u16 {
+            read_locktime_from_contract(&self.contract_redeemscript).unwrap()
+        }
+
         fn get_hashlock_pubkey(&self) -> PublicKey {
             read_hashlock_pubkey_from_contract(&self.contract_redeemscript).unwrap()
         }
diff --git a/src/wallet_direct_send.rs b/src/wallet_direct_send.rs
index 5947d6a8..c5f90b53 100644
--- a/src/wallet_direct_send.rs
+++ b/src/wallet_direct_send.rs
@@ -6,6 +6,7 @@ use bitcoin::{Address, Amount, OutPoint, Script, Transaction, TxIn, TxOut};
 use bitcoincore_rpc::json::ListUnspentResultEntry;
 use bitcoincore_rpc::Client;
 
+use crate::contracts::SwapCoin;
 use crate::error::Error;
 use crate::wallet_sync::{UTXOSpendInfo, Wallet, NETWORK};
 
@@ -139,9 +140,20 @@ impl Wallet {
                         }
                     }
                 };
+
+                let sequence = match spend_info {
+                    UTXOSpendInfo::TimelockContract {
+                        ref swapcoin_multisig_redeemscript,
+                        input_value: _,
+                    } => self
+                        .find_outgoing_swapcoin(swapcoin_multisig_redeemscript)
+                        .unwrap()
+                        .get_timelock() as u32,
+                    _ => 0,
+                };
                 tx_inputs.push(TxIn {
                     previous_output,
-                    sequence: 0,
+                    sequence,
                     witness: Vec::new(),
                     script_sig: Script::new(),
                 });
@@ -154,6 +166,7 @@ impl Wallet {
                 tx_inputs
             );
         }
+
         let dest_addr = match destination {
             Destination::Wallet => self.get_next_external_address(rpc)?,
             Destination::Address(a) => a,
diff --git a/src/wallet_sync.rs b/src/wallet_sync.rs
index 45af8bd6..f9e878fd 100644
--- a/src/wallet_sync.rs
+++ b/src/wallet_sync.rs
@@ -108,6 +108,7 @@ pub enum UTXOSpendInfo {
     },
     TimelockContract {
         swapcoin_multisig_redeemscript: Script,
+        input_value: u64,
     },
 }
 
@@ -269,6 +270,31 @@ impl OutgoingSwapCoin {
         );
         signed_contract_tx
     }
+
+    fn sign_timelocked_transaction_input(
+        &self,
+        index: usize,
+        tx: &Transaction,
+        input: &mut TxIn,
+        input_value: u64,
+    ) {
+        let secp = Secp256k1::new();
+        let sighash = secp256k1::Message::from_slice(
+            &SigHashCache::new(tx).signature_hash(
+                index,
+                &self.contract_redeemscript,
+                input_value,
+                SigHashType::All,
+            )[..],
+        )
+        .unwrap();
+
+        let sig_timelock = secp.sign(&sighash, &self.timelock_privkey);
+        input.witness.push(sig_timelock.serialize_der().to_vec());
+        input.witness[0].push(SigHashType::All as u8);
+        input.witness.push(Vec::new());
+        input.witness.push(self.contract_redeemscript.to_bytes());
+    }
 }
 
 pub trait WalletSwapCoin {
@@ -750,6 +776,7 @@ impl Wallet {
             return if u.confirmations >= timelock.into() {
                 Some(UTXOSpendInfo::TimelockContract {
                     swapcoin_multisig_redeemscript: swapcoin.get_multisig_redeemscript(),
+                    input_value: u.amount.as_sat(),
                 })
             } else {
                 None
@@ -1094,10 +1121,12 @@ impl Wallet {
                     input.witness.push(pubkey.to_bytes());
                 }
                 UTXOSpendInfo::TimelockContract {
-                    swapcoin_multisig_redeemscript: _,
-                } => {
-                    panic!("not implemented yet");
-                }
+                    swapcoin_multisig_redeemscript,
+                    input_value,
+                } => self
+                    .find_outgoing_swapcoin(&swapcoin_multisig_redeemscript)
+                    .unwrap()
+                    .sign_timelocked_transaction_input(ix, &tx_clone, &mut input, input_value),
             }
         }
     }