diff --git a/ibc-apps/ics20-transfer/types/src/denom.rs b/ibc-apps/ics20-transfer/types/src/denom.rs
index 65b38fe67..aa65aec74 100644
--- a/ibc-apps/ics20-transfer/types/src/denom.rs
+++ b/ibc-apps/ics20-transfer/types/src/denom.rs
@@ -398,6 +398,20 @@ mod tests {
         Ok(())
     }
 
+    #[test]
+    fn test_invalid_channel_id() -> Result<(), TokenTransferError> {
+        let denom = "transfer/channel-75/factory/stars16da2uus9zrsy83h23ur42v3lglg5rmyrpqnju4/dust";
+        let dt = PrefixedDenom::from_str(denom)?;
+
+        assert_eq!(dt.trace_path.to_string(), "transfer/channel-75");
+        assert_eq!(
+            dt.base_denom.to_string(),
+            "factory/stars16da2uus9zrsy83h23ur42v3lglg5rmyrpqnju4/dust"
+        );
+
+        Ok(())
+    }
+
     #[test]
     fn test_denom_trace() -> Result<(), TokenTransferError> {
         assert_eq!(