diff --git a/x/liquidstakeibc/keeper/msg_server.go b/x/liquidstakeibc/keeper/msg_server.go
index 3019efe7..6376058e 100644
--- a/x/liquidstakeibc/keeper/msg_server.go
+++ b/x/liquidstakeibc/keeper/msg_server.go
@@ -376,6 +376,14 @@ func (k msgServer) UpdateHostChain(
 			if err != nil {
 				return nil, err
 			}
+		case types.KeyForceTransferDeposits:
+			amount := k.bankKeeper.GetBalance(ctx, k.GetDepositModuleAccount(ctx).GetAddress(), hc.IBCDenom())
+			if amount.IsPositive() {
+				err := k.bankKeeper.SendCoins(ctx, k.GetDepositModuleAccount(ctx).GetAddress(), k.GetUndelegationModuleAccount(ctx).GetAddress(), sdktypes.NewCoins(amount))
+				if err != nil {
+					return nil, err
+				}
+			}
 		default:
 			return nil, fmt.Errorf("invalid or unexpected update key: %s", update.Key)
 		}
diff --git a/x/liquidstakeibc/types/keys.go b/x/liquidstakeibc/types/keys.go
index d1dde07a..aa898286 100644
--- a/x/liquidstakeibc/types/keys.go
+++ b/x/liquidstakeibc/types/keys.go
@@ -90,6 +90,7 @@ const (
 	KeyForceUnbond                 string = "force_unbond"
 	KeyForceICATransfer            string = "force_ica_transfer"
 	KeyForceICATransferRewards     string = "force_ica_transfer_rewards"
+	KeyForceTransferDeposits       string = "force_transfer_deposits"
 )
 
 var (
diff --git a/x/liquidstakeibc/types/msgs.go b/x/liquidstakeibc/types/msgs.go
index a4dd4582..e9b6133c 100644
--- a/x/liquidstakeibc/types/msgs.go
+++ b/x/liquidstakeibc/types/msgs.go
@@ -422,6 +422,11 @@ func (m *MsgUpdateHostChain) ValidateBasic() error {
 			if err != nil {
 				return err
 			}
+		case KeyForceTransferDeposits:
+			// expected nothing, ""
+			if update.Value != "" {
+				return fmt.Errorf("invalid force transfer deposits, expected \"\" ")
+			}
 		default:
 			return fmt.Errorf("invalid or unexpected update key: %s", update.Key)
 		}