diff --git a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/PresentBackgroundJobs.scala b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/PresentBackgroundJobs.scala
index 54fbad2e1e..b89cd14d2a 100644
--- a/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/PresentBackgroundJobs.scala
+++ b/cloud-agent/service/server/src/main/scala/org/hyperledger/identus/agent/server/jobs/PresentBackgroundJobs.scala
@@ -17,7 +17,6 @@ import org.hyperledger.identus.castor.core.model.error.DIDResolutionError as Cas
 import org.hyperledger.identus.castor.core.service.DIDService
 import org.hyperledger.identus.mercury.*
 import org.hyperledger.identus.mercury.model.*
-import org.hyperledger.identus.mercury.model.error.TransportError
 import org.hyperledger.identus.mercury.protocol.presentproof.*
 import org.hyperledger.identus.mercury.protocol.reportproblem.v2.{ProblemCode, ReportProblem}
 import org.hyperledger.identus.pollux.core.model.*
@@ -84,7 +83,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
     aux(record)
       .tapError({
         (error: PresentationError | DIDSecretStorageError | BackgroundJobError | CredentialServiceError |
-          CastorDIDResolutionError | GetManagedDIDError | TransportError | Failure) =>
+          CastorDIDResolutionError | GetManagedDIDError | Failure) =>
           ZIO.logErrorCause(
             s"Present Proof - Error processing record: ${record.id}",
             Cause.fail(error)
@@ -999,7 +998,7 @@ object PresentBackgroundJobs extends BackgroundJobsHelper {
           presentation: Presentation
       ): ZIO[
         PresentationService & DIDNonSecretStorage & MESSAGING_RESOURCES,
-        PresentationError | DIDSecretStorageError | TransportError,
+        PresentationError | DIDSecretStorageError,
         Unit
       ] = {
         for {
diff --git a/cloud-agent/service/wallet-api/src/main/scala/org/hyperledger/identus/agent/walletapi/model/error/DIDSecretStorageError.scala b/cloud-agent/service/wallet-api/src/main/scala/org/hyperledger/identus/agent/walletapi/model/error/DIDSecretStorageError.scala
index fcc26e4b77..85a305541e 100644
--- a/cloud-agent/service/wallet-api/src/main/scala/org/hyperledger/identus/agent/walletapi/model/error/DIDSecretStorageError.scala
+++ b/cloud-agent/service/wallet-api/src/main/scala/org/hyperledger/identus/agent/walletapi/model/error/DIDSecretStorageError.scala
@@ -13,12 +13,12 @@ sealed trait DIDSecretStorageError(
 object DIDSecretStorageError {
   case class KeyNotFoundError(didId: DidId, keyId: String)
       extends DIDSecretStorageError(
-        StatusCode.InternalServerError,
+        StatusCode.NotFound,
         s"The not found: keyId='$keyId', didId='$didId'"
       )
   case class WalletNotFoundError(didId: DidId)
       extends DIDSecretStorageError(
-        StatusCode.InternalServerError,
+        StatusCode.NotFound,
         s"The DID not Found in Wallet: didId='$didId'"
       )
 }
diff --git a/mercury/models/src/main/scala/org/hyperledger/identus/mercury/model/error/package.scala b/mercury/models/src/main/scala/org/hyperledger/identus/mercury/model/error/package.scala
index 9a03550fc3..4ea83a1357 100644
--- a/mercury/models/src/main/scala/org/hyperledger/identus/mercury/model/error/package.scala
+++ b/mercury/models/src/main/scala/org/hyperledger/identus/mercury/model/error/package.scala
@@ -2,30 +2,13 @@ package org.hyperledger.identus.mercury.model
 
 import org.hyperledger.identus.shared.models._
 
-import java.io.IOException
-
 package object error {
 
-  type MercuryException = MercuryError | IOException
-  type MercuryThrowable = MercuryError | IOException | Throwable // REMOVE Throwable
-
-  def mercuryErrorAsThrowable(error: MercuryThrowable): java.lang.Throwable = error match
-    case ex: MercuryError => ex.toUnmanagedFailureException
-    case ex: IOException  => ex
-    case ex: Throwable    => ex
-
   sealed trait MercuryError extends Failure {
     override val namespace: String = "MercuryError"
   }
 
-  trait TransportError extends MercuryError
-
-  sealed case class SendMessageError(cause: Throwable, mData: Option[String] = None)
-      extends RuntimeException(
-        s"Error when sending message: ${cause.getMessage};${mData.map(e => s" DATA:'$e'").getOrElse("")}",
-        cause
-      )
-      with TransportError {
+  sealed case class SendMessageError(cause: Throwable, mData: Option[String] = None) extends MercuryError {
     override val statusCode = StatusCode.BadRequest
     override val userFacingMessage =
       s"Error when sending message: ${cause.getMessage};${mData.map(e => s" DATA:'$e'").getOrElse("")}. "