diff --git a/server/src/engine/crypto.test.ts b/server/src/engine/crypto.test.ts
new file mode 100644
index 0000000..f2da45a
--- /dev/null
+++ b/server/src/engine/crypto.test.ts
@@ -0,0 +1,64 @@
+import { describe, it, expect } from 'vitest'
+import { encrypt, decrypt } from './crypto.js'
+
+describe('crypto — AES-256-GCM', () => {
+  it('encrypt then decrypt returns original plaintext', () => {
+    const plaintext = 'nostr+walletconnect://relay.example.com?secret=abc123'
+    const ciphertext = encrypt(plaintext)
+    const decrypted = decrypt(ciphertext)
+    expect(decrypted).toBe(plaintext)
+  })
+
+  it('encrypting same plaintext twice produces different ciphertexts (random IV)', () => {
+    const plaintext = 'same-text-every-time'
+    const c1 = encrypt(plaintext)
+    const c2 = encrypt(plaintext)
+    expect(c1).not.toBe(c2)
+    // Both should still decrypt to the same value
+    expect(decrypt(c1)).toBe(plaintext)
+    expect(decrypt(c2)).toBe(plaintext)
+  })
+
+  it('ciphertext format is iv:authTag:encrypted (3 hex parts)', () => {
+    const ciphertext = encrypt('test data')
+    const parts = ciphertext.split(':')
+    expect(parts.length).toBe(3)
+    // IV should be 16 bytes = 32 hex chars
+    expect(parts[0].length).toBe(32)
+    expect(parts[0]).toMatch(/^[0-9a-f]+$/)
+    // Auth tag should be 16 bytes = 32 hex chars
+    expect(parts[1].length).toBe(32)
+    expect(parts[1]).toMatch(/^[0-9a-f]+$/)
+    // Encrypted data is hex
+    expect(parts[2]).toMatch(/^[0-9a-f]+$/)
+  })
+
+  it('decrypt throws on tampered ciphertext (auth tag verification)', () => {
+    const ciphertext = encrypt('sensitive wallet data')
+    const parts = ciphertext.split(':')
+    // Tamper with the encrypted data
+    const tampered = parts[0] + ':' + parts[1] + ':' + 'ff'.repeat(parts[2].length / 2)
+    expect(() => decrypt(tampered)).toThrow()
+  })
+
+  it('decrypt throws on tampered auth tag', () => {
+    const ciphertext = encrypt('sensitive wallet data')
+    const parts = ciphertext.split(':')
+    // Tamper with the auth tag
+    const tampered = parts[0] + ':' + '00'.repeat(16) + ':' + parts[2]
+    expect(() => decrypt(tampered)).toThrow()
+  })
+
+  it('handles empty string encryption', () => {
+    const ciphertext = encrypt('')
+    const decrypted = decrypt(ciphertext)
+    expect(decrypted).toBe('')
+  })
+
+  it('handles unicode content', () => {
+    const plaintext = '₿⚡ Bitcoin Lightning 🟠'
+    const ciphertext = encrypt(plaintext)
+    const decrypted = decrypt(ciphertext)
+    expect(decrypted).toBe(plaintext)
+  })
+})