diff --git a/e2e/tests/transfer/authz_test.go b/e2e/tests/transfer/authz_test.go
index 906a77ec295..311758c11b2 100644
--- a/e2e/tests/transfer/authz_test.go
+++ b/e2e/tests/transfer/authz_test.go
@@ -6,6 +6,7 @@ import (
 
 	codectypes "github.com/cosmos/cosmos-sdk/codec/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
 	"github.com/cosmos/cosmos-sdk/x/authz"
 	test "github.com/strangelove-ventures/ibctest/v6/testutil"
 	"github.com/stretchr/testify/suite"
@@ -177,6 +178,143 @@ func (suite *AuthzTransferTestSuite) TestAuthz_MsgTransfer_Succeeds() {
 	})
 }
 
+func (suite *AuthzTransferTestSuite) TestAuthz_InvalidTransferAuthorizations() {
+	t := suite.T()
+	ctx := context.TODO()
+
+	relayer, channelA := suite.SetupChainsRelayerAndChannel(ctx, transferChannelOptions())
+	chainA, chainB := suite.GetChains()
+
+	chainADenom := chainA.Config().Denom
+
+	granterWallet := suite.CreateUserOnChainA(ctx, testvalues.StartingTokenAmount)
+	granterAddress := granterWallet.Bech32Address(chainA.Config().Bech32Prefix)
+
+	granteeWallet := suite.CreateUserOnChainA(ctx, testvalues.StartingTokenAmount)
+	granteeAddress := granteeWallet.Bech32Address(chainA.Config().Bech32Prefix)
+
+	receiverWallet := suite.CreateUserOnChainB(ctx, testvalues.StartingTokenAmount)
+	receiverWalletAddress := receiverWallet.Bech32Address(chainB.Config().Bech32Prefix)
+
+	t.Run("start relayer", func(t *testing.T) {
+		suite.StartRelayer(relayer)
+	})
+
+	const spendLimit = 1000
+
+	t.Run("broadcast MsgGrant", func(t *testing.T) {
+		transferAuth := transfertypes.TransferAuthorization{
+			Allocations: []transfertypes.Allocation{
+				{
+					SourcePort:    channelA.PortID,
+					SourceChannel: channelA.ChannelID,
+					SpendLimit:    sdk.NewCoins(sdk.NewCoin(chainADenom, sdk.NewInt(spendLimit))),
+					AllowList:     []string{receiverWalletAddress},
+				},
+			},
+		}
+
+		authAny, err := codectypes.NewAnyWithValue(&transferAuth)
+		suite.Require().NoError(err)
+
+		msgGrant := &authz.MsgGrant{
+			Granter: granterAddress,
+			Grantee: granteeAddress,
+			Grant: authz.Grant{
+				Authorization: authAny,
+				// no expiration
+				Expiration: nil,
+			},
+		}
+
+		resp, err := suite.BroadcastMessages(context.TODO(), chainA, granterWallet, msgGrant)
+		suite.AssertValidTxResponse(resp)
+		suite.Require().NoError(err)
+	})
+
+	t.Run("exceed spend limit", func(t *testing.T) {
+		const invalidSpendAmount = spendLimit + 1
+
+		t.Run("broadcast MsgExec for ibc MsgTransfer", func(t *testing.T) {
+			transferMsg := transfertypes.MsgTransfer{
+				SourcePort:    channelA.PortID,
+				SourceChannel: channelA.ChannelID,
+				Token:         sdk.Coin{Denom: chainADenom, Amount: sdk.NewInt(invalidSpendAmount)},
+				Sender:        granterAddress,
+				Receiver:      receiverWalletAddress,
+				TimeoutHeight: suite.GetTimeoutHeight(ctx, chainB),
+			}
+
+			transferAny, err := codectypes.NewAnyWithValue(&transferMsg)
+			suite.Require().NoError(err)
+
+			msgExec := &authz.MsgExec{
+				Grantee: granteeAddress,
+				Msgs:    []*codectypes.Any{transferAny},
+			}
+
+			resp, err := suite.BroadcastMessages(context.TODO(), chainA, granteeWallet, msgExec)
+			suite.Require().NotEqual(0, resp.Code)
+			suite.Require().Contains(resp.RawLog, sdkerrors.ErrInsufficientFunds.Error())
+			suite.Require().NoError(err)
+		})
+
+		t.Run("verify granter wallet amount", func(t *testing.T) {
+			actualBalance, err := suite.GetChainANativeBalance(ctx, granterWallet)
+			suite.Require().NoError(err)
+			suite.Require().Equal(testvalues.StartingTokenAmount, actualBalance)
+		})
+
+		t.Run("verify receiver wallet amount", func(t *testing.T) {
+			chainBIBCToken := testsuite.GetIBCToken(chainADenom, channelA.Counterparty.PortID, channelA.Counterparty.ChannelID)
+			actualBalance, err := chainB.GetBalance(ctx, receiverWalletAddress, chainBIBCToken.IBCDenom())
+			suite.Require().NoError(err)
+			suite.Require().Equal(int64(0), actualBalance)
+		})
+
+		t.Run("granter grant spend limit unchanged", func(t *testing.T) {
+			grantAuths, err := suite.QueryGranterGrants(ctx, chainA, granterAddress)
+
+			suite.Require().NoError(err)
+			suite.Require().Len(grantAuths, 1)
+			grantAuthorization := grantAuths[0]
+
+			transferAuth := suite.extractTransferAuthorizationFromGrantAuthorization(grantAuthorization)
+			expectedSpendLimit := sdk.NewCoins(sdk.NewCoin(chainADenom, sdk.NewInt(spendLimit)))
+			suite.Require().Equal(expectedSpendLimit, transferAuth.Allocations[0].SpendLimit)
+		})
+	})
+
+	t.Run("send funds to invalid address", func(t *testing.T) {
+		invalidWallet := suite.CreateUserOnChainB(ctx, testvalues.StartingTokenAmount)
+		invalidWalletAddress := invalidWallet.Bech32Address(chainB.Config().Bech32Prefix)
+
+		t.Run("broadcast MsgExec for ibc MsgTransfer", func(t *testing.T) {
+			transferMsg := transfertypes.MsgTransfer{
+				SourcePort:    channelA.PortID,
+				SourceChannel: channelA.ChannelID,
+				Token:         sdk.Coin{Denom: chainADenom, Amount: sdk.NewInt(spendLimit)},
+				Sender:        granterAddress,
+				Receiver:      invalidWalletAddress,
+				TimeoutHeight: suite.GetTimeoutHeight(ctx, chainB),
+			}
+
+			transferAny, err := codectypes.NewAnyWithValue(&transferMsg)
+			suite.Require().NoError(err)
+
+			msgExec := &authz.MsgExec{
+				Grantee: granteeAddress,
+				Msgs:    []*codectypes.Any{transferAny},
+			}
+
+			resp, err := suite.BroadcastMessages(context.TODO(), chainA, granteeWallet, msgExec)
+			suite.Require().NotEqual(0, resp.Code)
+			suite.Require().Contains(resp.RawLog, sdkerrors.ErrInvalidAddress.Error())
+			suite.Require().NoError(err)
+		})
+	})
+}
+
 // extractTransferAuthorizationFromGrantAuthorization extracts a TransferAuthorization from the given
 // GrantAuthorization.
 func (suite *AuthzTransferTestSuite) extractTransferAuthorizationFromGrantAuthorization(grantAuth *authz.GrantAuthorization) *transfertypes.TransferAuthorization {
diff --git a/e2e/testvalues/values.go b/e2e/testvalues/values.go
index 3e95f5cddf8..eedf831cc95 100644
--- a/e2e/testvalues/values.go
+++ b/e2e/testvalues/values.go
@@ -41,5 +41,5 @@ func TendermintClientID(id int) string {
 }
 
 func SolomachineClientID(id int) string {
-	return fmt.Sprint("06-solomachine-%d", id)
+	return fmt.Sprintf("06-solomachine-%d", id)
 }