diff --git a/app/src/main/java/com/anytypeio/anytype/ui/onboarding/OnboardingFragment.kt b/app/src/main/java/com/anytypeio/anytype/ui/onboarding/OnboardingFragment.kt
index 494f6990ad..eaf08c12be 100644
--- a/app/src/main/java/com/anytypeio/anytype/ui/onboarding/OnboardingFragment.kt
+++ b/app/src/main/java/com/anytypeio/anytype/ui/onboarding/OnboardingFragment.kt
@@ -399,6 +399,14 @@ class OnboardingFragment : Fragment() {
                         errorText.value = getString(R.string.error_login_select_vault_error)
                         isErrorDialogVisible.value = true
                     }
+                    is OnboardingMnemonicLoginViewModel.SideEffect.Error.AccountDeletedError -> {
+                        errorText.value = getString(R.string.error_login_account_deleted_error)
+                        isErrorDialogVisible.value = true
+                    }
+                    is OnboardingMnemonicLoginViewModel.SideEffect.Error.NeedUpdateError -> {
+                        errorText.value = getString(R.string.error_login_account_need_update_error)
+                        isErrorDialogVisible.value = true
+                    }
                 }
             }
         }
diff --git a/localization/src/main/res/values/strings.xml b/localization/src/main/res/values/strings.xml
index e810d38c87..74fd44bbaf 100644
--- a/localization/src/main/res/values/strings.xml
+++ b/localization/src/main/res/values/strings.xml
@@ -1702,6 +1702,8 @@ Please provide specific details of your needs here.</string>
     <string name="membership_error_button_text_dismiss">Ok</string>
     <string name="error_login_network_id_mismatch">Network ID mismatch detected. Please verify your network configuration.</string>
     <string name="error_login_select_vault_error">Select vault error.</string>
+    <string name="error_login_account_deleted_error">This account is deleted. Try using another account or create a new one.</string>
+    <string name="error_login_account_need_update_error">Unable to retrieve account. Please update Anytype to the latest version.</string>
     <string name="global_search_related_to">"Related to: "</string>
     <string name="global_search_no_related_objects_found">No related objects found</string>
 
diff --git a/presentation/src/main/java/com/anytypeio/anytype/presentation/onboarding/login/OnboardingMnemonicLoginViewModel.kt b/presentation/src/main/java/com/anytypeio/anytype/presentation/onboarding/login/OnboardingMnemonicLoginViewModel.kt
index 0074a545f2..9c8b081095 100644
--- a/presentation/src/main/java/com/anytypeio/anytype/presentation/onboarding/login/OnboardingMnemonicLoginViewModel.kt
+++ b/presentation/src/main/java/com/anytypeio/anytype/presentation/onboarding/login/OnboardingMnemonicLoginViewModel.kt
@@ -66,8 +66,6 @@ class OnboardingMnemonicLoginViewModel @Inject constructor(
 
     val command = MutableSharedFlow<Command>(replay = 0)
 
-    val error by lazy { MutableStateFlow(NO_ERROR) }
-
     private var debugClickCount = 0
     private val _fiveClicks = MutableStateFlow(false)
 
@@ -216,14 +214,22 @@ class OnboardingMnemonicLoginViewModel @Inject constructor(
         ) { result ->
             result.either(
                 fnL = { e ->
-                    if (e is AccountIsDeletedException) {
-                        error.value = "This account is deleted. Try using another account or create a new one."
-                    } else {
-                        error.value = "Error while account loading \n ${e.localizedMessage}"
+                    viewModelScope.launch {
+                        if (e is AccountIsDeletedException) {
+                            sideEffects.emit(
+                                value = SideEffect.Error.Unknown(
+                                    msg = "This account is deleted. Try using another account or create a new one."
+                                )
+                            )
+                        } else {
+                            sideEffects.emit(
+                                value = SideEffect.Error.Unknown(
+                                    msg = "Error while account loading \n ${e.localizedMessage}"
+                                )
+                            )
+                        }
+                        Timber.e(e, "Error while account loading")
                     }
-                    Timber.e(e, "Error while account loading")
-                    // TODO refact
-                    viewModelScope.launch { command.emit(Command.Exit) }
                 },
                 fnR = {
                     Timber.d("Account loading successfully finished")
@@ -263,10 +269,10 @@ class OnboardingMnemonicLoginViewModel @Inject constructor(
                             navigateToMigrationErrorScreen()
                         }
                         is AccountIsDeletedException -> {
-                            error.value = "This account is deleted. Try using another account or create a new one."
+                            sideEffects.emit(value = SideEffect.Error.AccountDeletedError)
                         }
                         is NeedToUpdateApplicationException -> {
-                            error.value = SplashViewModel.ERROR_NEED_UPDATE
+                            sideEffects.emit(value = SideEffect.Error.NeedUpdateError)
                         }
                         is LoginException.NetworkIdMismatch -> {
                             sideEffects.emit(SideEffect.Error.NetworkIdMismatch)
@@ -276,7 +282,11 @@ class OnboardingMnemonicLoginViewModel @Inject constructor(
                         }
                         else -> {
                             val msg = e.message ?: "Unknown error"
-                            error.value = "${ERROR_MESSAGE}: $msg"
+                            sideEffects.emit(
+                                value = SideEffect.Error.Unknown(
+                                    msg = "${ERROR_MESSAGE}: $msg"
+                                )
+                            )
                         }
                     }
                 },
@@ -371,6 +381,8 @@ class OnboardingMnemonicLoginViewModel @Inject constructor(
             data object InvalidMnemonic : Error()
             data object NetworkIdMismatch: Error()
             data object SelectVaultError: Error()
+            data object AccountDeletedError: Error()
+            data object NeedUpdateError: Error()
             data class Unknown(val msg: String): SideEffect()
         }
         data object Exit: SideEffect()