diff --git a/cabal.project b/cabal.project
index f7e3226a7c..38e8c852af 100644
--- a/cabal.project
+++ b/cabal.project
@@ -12,7 +12,7 @@ constraints: zip +disable-bzip2 +disable-zstd
 source-repository-package
     type: git
     location: https://github.com/simplex-chat/simplexmq.git
-    tag: ad8cd1d5154617663065652b45c784ad5a0a584d
+    tag: e65ca0e8d4a23ebb77528b8564f55d88c338b908
 
 source-repository-package
     type: git
diff --git a/src/Simplex/Chat.hs b/src/Simplex/Chat.hs
index 5c35f89775..1dc45b8604 100644
--- a/src/Simplex/Chat.hs
+++ b/src/Simplex/Chat.hs
@@ -209,7 +209,7 @@ newChatController
   backgroundMode = do
     let inlineFiles' = if allowInstantFiles || autoAcceptFileSize > 0 then inlineFiles else inlineFiles {sendChunks = 0, receiveInstant = False}
         config = cfg {logLevel, showReactions, tbqSize, subscriptionEvents = logConnections, hostEvents = logServerHosts, defaultServers = configServers, inlineFiles = inlineFiles', autoAcceptFileSize, highlyAvailable}
-    firstTime <- newTVarIO $ dbNew chatStore
+        firstTime = dbNew chatStore
     currentUser <- newTVarIO user
     currentRemoteHost <- newTVarIO Nothing
     servers <- agentServers config
@@ -455,20 +455,14 @@ processChatCommand' vr = \case
     u <- asks currentUser
     (smp, smpServers) <- chooseServers SPSMP
     (xftp, xftpServers) <- chooseServers SPXFTP
-    fstTime <- chatReadVar firstTime
     users <- withStore' getUsers
-    auId <-
-      case users of
-        [] | fstTime -> pure 1
-        _ -> do
-          forM_ users $ \User {localDisplayName = n, activeUser, viewPwdHash} ->
-            when (n == displayName) . throwChatError $
-              if activeUser || isNothing viewPwdHash then CEUserExists displayName else CEInvalidDisplayName {displayName, validName = ""}
-          withAgent (\a -> createUser a smp xftp)
+    forM_ users $ \User {localDisplayName = n, activeUser, viewPwdHash} ->
+      when (n == displayName) . throwChatError $
+        if activeUser || isNothing viewPwdHash then CEUserExists displayName else CEInvalidDisplayName {displayName, validName = ""}
+    auId <- withAgent (\a -> createUser a smp xftp)
     ts <- liftIO $ getCurrentTime >>= if pastTimestamp then coupleDaysAgo else pure
     user <- withStore $ \db -> createUserRecordAt db (AgentUserId auId) p True ts
-    chatWriteVar firstTime False
-    when (null users && fstTime) $ withStore (\db -> createContact db user simplexContactProfile) `catchChatError` \_ -> pure ()
+    when (null users) $ withStore (\db -> createContact db user simplexContactProfile) `catchChatError` \_ -> pure ()
     withStore $ \db -> createNoteFolder db user
     storeServers user smpServers
     storeServers user xftpServers
diff --git a/src/Simplex/Chat/Controller.hs b/src/Simplex/Chat/Controller.hs
index 0787842b5c..7b4a228c59 100644
--- a/src/Simplex/Chat/Controller.hs
+++ b/src/Simplex/Chat/Controller.hs
@@ -175,7 +175,7 @@ data ChatDatabase = ChatDatabase {chatStore :: SQLiteStore, agentStore :: SQLite
 data ChatController = ChatController
   { currentUser :: TVar (Maybe User),
     currentRemoteHost :: TVar (Maybe RemoteHostId),
-    firstTime :: TVar Bool,
+    firstTime :: Bool,
     smpAgent :: AgentClient,
     agentAsync :: TVar (Maybe (Async (), Maybe (Async ()))),
     chatStore :: SQLiteStore,
diff --git a/src/Simplex/Chat/Core.hs b/src/Simplex/Chat/Core.hs
index 7da572d095..72c136f3f8 100644
--- a/src/Simplex/Chat/Core.hs
+++ b/src/Simplex/Chat/Core.hs
@@ -6,7 +6,6 @@
 
 module Simplex.Chat.Core
   ( simplexChatCore,
-    simplexChatCore',
     runSimplexChat,
     sendChatCmdStr,
     sendChatCmd,
@@ -35,10 +34,7 @@ import Text.Read (readMaybe)
 import UnliftIO.Async
 
 simplexChatCore :: ChatConfig -> ChatOpts -> (User -> ChatController -> IO ()) -> IO ()
-simplexChatCore cfg opts = simplexChatCore' cfg opts . const
-
-simplexChatCore' :: ChatConfig -> ChatOpts -> (Bool -> User -> ChatController -> IO ()) -> IO ()
-simplexChatCore' cfg@ChatConfig {confirmMigrations, testView} opts@ChatOpts {coreOptions = CoreChatOpts {dbFilePrefix, dbKey, logAgent}} chat =
+simplexChatCore cfg@ChatConfig {confirmMigrations, testView} opts@ChatOpts {coreOptions = CoreChatOpts {dbFilePrefix, dbKey, logAgent}} chat =
   case logAgent of
     Just level -> do
       setLogLevel level
@@ -52,10 +48,9 @@ simplexChatCore' cfg@ChatConfig {confirmMigrations, testView} opts@ChatOpts {cor
     run db@ChatDatabase {chatStore} = do
       u_ <- getSelectActiveUser chatStore
       cc <- newChatController db u_ cfg opts False
-      fstTime <- readTVarIO $ firstTime cc
       u <- maybe (createActiveUser cc) pure u_
       unless testView $ putStrLn $ "Current user: " <> userStr u
-      runSimplexChat opts u cc $ chat fstTime
+      runSimplexChat opts u cc chat
 
 runSimplexChat :: ChatOpts -> User -> ChatController -> (User -> ChatController -> IO ()) -> IO ()
 runSimplexChat ChatOpts {maintenance} u cc chat
diff --git a/src/Simplex/Chat/Terminal.hs b/src/Simplex/Chat/Terminal.hs
index 87c8d5d13e..549a6cc080 100644
--- a/src/Simplex/Chat/Terminal.hs
+++ b/src/Simplex/Chat/Terminal.hs
@@ -48,9 +48,9 @@ simplexChatTerminal :: WithTerminal t => ChatConfig -> ChatOpts -> t -> IO ()
 simplexChatTerminal cfg options t = run options
   where
     run opts@ChatOpts {coreOptions = coreOptions@CoreChatOpts {dbKey}} =
-      handle checkDBKeyError . simplexChatCore' cfg opts $ \fstTime u cc -> do
+      handle checkDBKeyError . simplexChatCore cfg opts $ \u cc -> do
         ct <- newChatTerminal t opts
-        when fstTime . printToTerminal ct $ chatWelcome u
+        when (firstTime cc) . printToTerminal ct $ chatWelcome u
         runChatTerminal ct cc opts
       where
         checkDBKeyError :: SQLError -> IO ()
diff --git a/tests/ChatClient.hs b/tests/ChatClient.hs
index c04d99f9ee..b26f76ab2c 100644
--- a/tests/ChatClient.hs
+++ b/tests/ChatClient.hs
@@ -306,8 +306,8 @@ getTermLine cc =
   5000000 `timeout` atomically (readTQueue $ termQ cc) >>= \case
     Just s -> do
       -- remove condition to always echo virtual terminal
-      -- when True $ do
-      when (printOutput cc) $ do
+      when True $ do
+      -- when (printOutput cc) $ do
         name <- userName cc
         putStrLn $ name <> ": " <> s
       pure s
diff --git a/tests/ChatTests/Direct.hs b/tests/ChatTests/Direct.hs
index bb194df82b..f641135aeb 100644
--- a/tests/ChatTests/Direct.hs
+++ b/tests/ChatTests/Direct.hs
@@ -29,7 +29,7 @@ import Test.Hspec
 chatDirectTests :: SpecWith FilePath
 chatDirectTests = do
   describe "direct messages" $ do
-    describe "add contact and send/receive messages" testAddContact
+    fdescribe "add contact and send/receive messages" testAddContact
     it "clear chat with contact" testContactClear
     it "deleting contact deletes profile" testDeleteContactDeletesProfile
     it "unused contact is deleted silently" testDeleteUnusedContactSilent