diff --git a/ethtools/src/geth_keys.rs b/ethtools/src/geth_keys.rs
index 7d6c7adef..1a6fb75d4 100644
--- a/ethtools/src/geth_keys.rs
+++ b/ethtools/src/geth_keys.rs
@@ -134,6 +134,28 @@ mod tests {
 		assert!(key.is_some());
 	}
 
+	#[test]
+	fn imports_as_scrypt_keys() {
+		use util::keys::directory::{KeyDirectory, KeyFileKdf};
+		let temp = ::devtools::RandomTempPath::create_dir();
+		{
+			let mut secret_store = SecretStore::new_in(temp.as_path());
+			import_geth_keys(&mut secret_store, Path::new("res/geth_keystore")).unwrap();
+		}
+
+		let key_directory = KeyDirectory::new(&temp.as_path());
+		let key_file = key_directory.get(&H128::from_str("62a0ad73556d496a8e1c0783d30d3ace").unwrap()).unwrap();
+
+		match key_file.crypto.kdf {
+			KeyFileKdf::Scrypt(scrypt_params) => {
+				assert_eq!(262144, scrypt_params.n);
+				assert_eq!(8, scrypt_params.r);
+				assert_eq!(1, scrypt_params.p);
+			},
+			_ => { panic!("expected kdf params of crypto to be of scrypt type" ); }
+		}
+	}
+
 	#[test]
 	fn can_decrypt_with_imported() {
 		use util::keys::store::EncryptedHashMap;
@@ -145,6 +167,6 @@ mod tests {
 
 		let val = secret_store.get::<Bytes>(&H128::from_str("62a0ad73556d496a8e1c0783d30d3ace").unwrap(), "123");
 		assert!(val.is_ok());
-		assert_eq!(vec![0u8, 10], val.unwrap());
+		assert_eq!(32, val.unwrap().len());
 	}
 }
diff --git a/util/src/keys/store.rs b/util/src/keys/store.rs
index 1fdb1e8a3..b6ae84990 100644
--- a/util/src/keys/store.rs
+++ b/util/src/keys/store.rs
@@ -125,7 +125,7 @@ fn derive_key(password: &str, salt: &H256) -> (Bytes, Bytes) {
 
 fn derive_key_scrypt(password: &str, salt: &H256, n: u32, p: u32, r: u32) -> (Bytes, Bytes) {
 	let mut derived_key = vec![0u8; KEY_LENGTH_USIZE];
-	let scrypt_params = ScryptParams::new(n as u8, r, p);
+	let scrypt_params = ScryptParams::new(n.trailing_zeros() as u8, r, p);
 	scrypt(password.as_bytes(), &salt.as_slice(), &scrypt_params, &mut derived_key);
 	let derived_right_bits = &derived_key[0..KEY_LENGTH_AES_USIZE];
 	let derived_left_bits = &derived_key[KEY_LENGTH_AES_USIZE..KEY_LENGTH_USIZE];