diff --git a/lbry/blob_exchange/server.py b/lbry/blob_exchange/server.py
index 93f685233..a2ff8b698 100644
--- a/lbry/blob_exchange/server.py
+++ b/lbry/blob_exchange/server.py
@@ -107,12 +107,14 @@ class BlobServerProtocol(asyncio.Protocol):
                     else:
                         self.close()
                         log.debug("stopped sending %s to %s:%i", blob_hash, peer_address, peer_port)
+                        return
                 except (OSError, ValueError, asyncio.TimeoutError) as err:
                     if isinstance(err, asyncio.TimeoutError):
                         log.debug("timed out sending blob %s to %s", blob_hash, peer_address)
                     else:
                         log.warning("could not read blob %s to send %s:%i", blob_hash, peer_address, peer_port)
                     self.close()
+                    return
                 finally:
                     self.transfer_finished.set()
             else:
diff --git a/tests/unit/blob_exchange/test_transfer_blob.py b/tests/unit/blob_exchange/test_transfer_blob.py
index 28a414996..f7c011e3b 100644
--- a/tests/unit/blob_exchange/test_transfer_blob.py
+++ b/tests/unit/blob_exchange/test_transfer_blob.py
@@ -219,6 +219,7 @@ class TestBlobExchange(BlobExchangeTestBase):
         server_protocol = BlobServerProtocol(self.loop, self.server_blob_manager, self.server.lbrycrd_address)
         transport = asyncio.Transport(extra={'peername': ('ip', 90)})
         received_data = BytesIO()
+        transport.is_closing = lambda: received_data.closed
         transport.write = received_data.write
         server_protocol.connection_made(transport)
         blob_request = BlobRequest.make_request_for_blob_hash(blob_hash).serialize()