diff --git a/core/src/main/java/haveno/core/support/dispute/DisputeManager.java b/core/src/main/java/haveno/core/support/dispute/DisputeManager.java
index bd019e128f..c4561a7fdf 100644
--- a/core/src/main/java/haveno/core/support/dispute/DisputeManager.java
+++ b/core/src/main/java/haveno/core/support/dispute/DisputeManager.java
@@ -332,7 +332,15 @@ public abstract class DisputeManager<T extends DisputeList<Dispute>> extends Sup
         // get trade
         Trade trade = tradeManager.getTrade(dispute.getTradeId());
         if (trade == null) {
-            log.warn("Dispute trade {} does not exist", dispute.getTradeId());
+            String errorMsg = "Dispute trade does not exist, tradeId=" + dispute.getTradeId();
+            faultHandler.handleFault(errorMsg, new IllegalStateException(errorMsg));
+            return;
+        }
+
+        // arbitrator cannot open disputes
+        if (trade.isArbitrator()) {
+            String errorMsg = "Arbitrators cannot open disputes.";
+            faultHandler.handleFault(errorMsg, new IllegalStateException(errorMsg));
             return;
         }
 
diff --git a/core/src/main/java/haveno/core/support/dispute/arbitration/ArbitrationManager.java b/core/src/main/java/haveno/core/support/dispute/arbitration/ArbitrationManager.java
index 9131623953..4941fcf4f4 100644
--- a/core/src/main/java/haveno/core/support/dispute/arbitration/ArbitrationManager.java
+++ b/core/src/main/java/haveno/core/support/dispute/arbitration/ArbitrationManager.java
@@ -87,9 +87,11 @@ import monero.wallet.model.MoneroTxWallet;
 import java.io.IOException;
 import java.math.BigInteger;
 import java.util.HashMap;
+import java.util.HashSet;
 import java.util.List;
 import java.util.Map;
 import java.util.Optional;
+import java.util.Set;
 
 import static com.google.common.base.Preconditions.checkNotNull;
 
@@ -168,7 +170,28 @@ public final class ArbitrationManager extends DisputeManager<ArbitrationDisputeL
 
     @Override
     public void cleanupDisputes() {
-        // no action
+
+        // remove disputes opened by arbitrator, which is not allowed
+        Set<Dispute> toRemoves = new HashSet<>();
+        List<Dispute> disputes = getDisputeList().getList();
+        for (Dispute dispute : disputes) {
+
+            // get dispute's trade
+            final Trade trade = tradeManager.getTrade(dispute.getTradeId());
+            if (trade == null) {
+                log.warn("Dispute trade {} does not exist", dispute.getTradeId());
+                return;
+            }
+
+            // collect dispute if owned by arbitrator
+            if (dispute.getTraderPubKeyRing().equals(trade.getArbitrator().getPubKeyRing())) {
+                toRemoves.add(dispute);
+            }
+        }
+        for (Dispute toRemove : toRemoves) {
+            log.warn("Removing invalid dispute opened by arbitrator, disputeId={}", toRemove.getTradeId(), toRemove.getId());
+            getDisputeList().remove(toRemove);
+        }
     }
 
     @Override