diff --git a/x/btcbridge/keeper/keeper_withdraw.go b/x/btcbridge/keeper/keeper_withdraw.go
index e6b7e52..6071e71 100644
--- a/x/btcbridge/keeper/keeper_withdraw.go
+++ b/x/btcbridge/keeper/keeper_withdraw.go
@@ -191,7 +191,7 @@ func (k Keeper) ProcessBitcoinWithdrawTransaction(ctx sdk.Context, msg *types.Ms
 	senderPubKey := uTx.MsgTx().TxIn[0].Witness[1]
 
 	// check if the first sender is one of the vault addresses
-	vault := types.SelectVaultByPubKey(param.Vaults, hex.EncodeToString(senderPubKey))
+	vault := types.SelectVaultByPubKey(k.cdc, param.Vaults, hex.EncodeToString(senderPubKey))
 	if vault == nil {
 		return types.ErrInvalidSenders
 	}
diff --git a/x/btcbridge/types/params.go b/x/btcbridge/types/params.go
index f6d8dc7..a741392 100644
--- a/x/btcbridge/types/params.go
+++ b/x/btcbridge/types/params.go
@@ -1,6 +1,12 @@
 package types
 
-import sdk "github.com/cosmos/cosmos-sdk/types"
+import (
+	"encoding/hex"
+
+	"github.com/cosmos/cosmos-sdk/codec"
+	"github.com/cosmos/cosmos-sdk/crypto/keys/segwit"
+	sdk "github.com/cosmos/cosmos-sdk/types"
+)
 
 // NewParams creates a new Params instance
 func NewParams(relayers []string) Params {
@@ -59,12 +65,32 @@ func SelectVaultByBitcoinAddress(vaults []*Vault, address string) *Vault {
 
 // SelectVaultByPubKey returns the vault if the public key is found
 // returns the vault if the public key is found
-func SelectVaultByPubKey(vaults []*Vault, pubKey string) *Vault {
+func SelectVaultByPubKey(cdc codec.BinaryCodec, vaults []*Vault, pubKey string) *Vault {
 	for _, v := range vaults {
-		if v.PubKey == pubKey {
+		if ParseVaultPubKey(cdc, v) == pubKey {
 			return v
 		}
 	}
 
 	return nil
 }
+
+// ParseVaultPubKey parses the given vault public key
+// Note: return empty if any error occured
+func ParseVaultPubKey(cdc codec.BinaryCodec, vault *Vault) string {
+	pubKey := vault.PubKey
+
+	_, err := hex.DecodeString(pubKey)
+	if err == nil {
+		// pub key is hex encoded
+		return pubKey
+	}
+
+	var pk segwit.PubKey
+	err = cdc.Unmarshal([]byte(pubKey), &pk)
+	if err != nil {
+		return ""
+	}
+
+	return hex.EncodeToString(pk.Bytes())
+}