diff --git a/btcwallet.go b/btcwallet.go
index 6045c6c..f5ff669 100644
--- a/btcwallet.go
+++ b/btcwallet.go
@@ -82,6 +82,10 @@ func walletMain() error {
 	// Shutdown the server if an interrupt signal is received.
 	addInterruptHandler(server.Stop)
 
+	// Create a channel to report unrecoverable errors during chain
+	// server connection
+	chainSvrErrors := make(chan error)
+
 	// Create channel so that the goroutine which opens the chain server
 	// connection can pass the conn to the goroutine which opens the wallet.
 	// Buffer the channel so sends are not blocked, since if the wallet is
@@ -89,11 +93,14 @@ func walletMain() error {
 	chainSvrChan := make(chan *chain.Client, 1)
 
 	go func() {
+		defer close(chainSvrErrors)
+
 		// Read CA certs and create the RPC client.
 		certs, err := ioutil.ReadFile(cfg.CAFile)
 		if err != nil {
 			log.Errorf("Cannot open CA file: %v", err)
 			close(chainSvrChan)
+			chainSvrErrors <- err
 			return
 		}
 		rpcc, err := chain.NewClient(activeNet.Params, cfg.RPCConnect,
@@ -101,6 +108,7 @@ func walletMain() error {
 		if err != nil {
 			log.Errorf("Cannot create chain server RPC client: %v", err)
 			close(chainSvrChan)
+			chainSvrErrors <- err
 			return
 		}
 		err = rpcc.Start()
@@ -146,16 +154,29 @@ func walletMain() error {
 
 		// Start wallet goroutines and handle RPC client notifications
 		// if the chain server connection was opened.
+		// If the chain server connection failed due to an unrecoverable error,
+		// doesn't matter that the wallet goroutines are not started since the
+		// entire program will exit on receiving chainSvrErrors
 		select {
-		case chainSvr := <-chainSvrChan:
-			w.Start(chainSvr)
+		case chainSvr, ok := <-chainSvrChan:
+			if ok {
+				// Start wallet goroutines only when the chain rpc client was created
+				w.Start(chainSvr)
+			}
 		case <-server.quit:
 		}
 	}()
 
+	// Check for unrecoverable errors during chain server connection, and return
+	// the error, if any.
+	err, ok := <-chainSvrErrors
+	if ok {
+		return err
+	}
+
 	// Check for unrecoverable errors during the wallet startup, and return
 	// the error, if any.
-	err, ok := <-walletOpenErrors
+	err, ok = <-walletOpenErrors
 	if ok {
 		return err
 	}