diff --git a/beacon_chain/genesis/src/beacon_state.rs b/beacon_chain/genesis/src/beacon_state.rs
index b6a42db5b5..9724800f8b 100644
--- a/beacon_chain/genesis/src/beacon_state.rs
+++ b/beacon_chain/genesis/src/beacon_state.rs
@@ -103,21 +103,4 @@ mod tests {
             spec.initial_validators.len()
         );
     }
-
-    /*
-    #[test]
-    fn test_genesis_bad_validator() {
-        let mut spec = ChainSpec::foundation();
-
-        let random_kp = Keypair::random();
-        spec.initial_validators[4].proof_of_possession = create_proof_of_possession(&random_kp);
-
-        let state = genesis_beacon_state(&spec).unwrap();
-
-        assert_eq!(
-            state.validator_registry.len(),
-            spec.initial_validators.len() - 1
-        );
-    }
-    */
 }
diff --git a/beacon_chain/spec/src/foundation.rs b/beacon_chain/spec/src/foundation.rs
index ba437cef33..930e414e86 100644
--- a/beacon_chain/spec/src/foundation.rs
+++ b/beacon_chain/spec/src/foundation.rs
@@ -1,8 +1,11 @@
 use super::ChainSpec;
-use bls::{create_proof_of_possession, Keypair, PublicKey, SecretKey};
+use bls::{Keypair, PublicKey, SecretKey};
 
 use types::{Address, Hash256, ValidatorRecord};
 
+/// The size of a validators deposit in GWei.
+pub const DEPOSIT_GWEI: u64 = 32_000_000_000;
+
 impl ChainSpec {
     /// Returns a `ChainSpec` compatible with the specification from Ethereum Foundation.
     ///
@@ -64,7 +67,7 @@ impl ChainSpec {
              * Intialization parameters
              */
             initial_validators: initial_validators_for_testing(),
-            initial_balances: vec![0,0,0,0],
+            initial_balances: initial_balances_for_testing(),
             genesis_time: 1544672897,
             processed_pow_receipt_root: Hash256::from("pow_root".as_bytes()),
         }
@@ -113,6 +116,10 @@ fn initial_validators_for_testing() -> Vec<ValidatorRecord> {
     initial_validators
 }
 
+fn initial_balances_for_testing() -> Vec<u64> {
+    vec![DEPOSIT_GWEI; 4]
+}
+
 #[cfg(test)]
 mod tests {
     use super::*;
diff --git a/beacon_chain/types/src/chain_config.rs b/beacon_chain/types/src/chain_config.rs
index 51becf5190..e48aabe1ef 100644
--- a/beacon_chain/types/src/chain_config.rs
+++ b/beacon_chain/types/src/chain_config.rs
@@ -10,7 +10,6 @@ pub struct ChainConfig {
     pub max_validator_churn_quotient: u64,
     pub genesis_time: u64,
     pub slot_duration_millis: u64,
-    // TODO: Come back to this
     pub initial_validators: Vec<ValidatorRecord>,
 
     // New constants
diff --git a/beacon_chain/validator_induction/src/inductor.rs b/beacon_chain/validator_induction/src/inductor.rs
index 84d7928d01..000cb228b4 100644
--- a/beacon_chain/validator_induction/src/inductor.rs
+++ b/beacon_chain/validator_induction/src/inductor.rs
@@ -2,9 +2,6 @@ use bls::{verify_proof_of_possession};
 use types::{BeaconState, Deposit, ValidatorRecord, ValidatorStatus};
 use spec::ChainSpec;
 
-/// The size of a validators deposit in GWei.
-pub const DEPOSIT_GWEI: u64 = 32_000_000_000;
-
 #[derive(Debug, PartialEq, Clone)]
 pub enum ValidatorInductionError {
     InvalidShard,
@@ -83,8 +80,11 @@ fn min_empty_validator_index(
 #[cfg(test)]
 mod tests {
     use super::*;
-
-    use types::{Hash256, DepositData, DepositInput};
+    
+    use bls::{create_proof_of_possession, Keypair};
+    
+    /// The size of a validators deposit in GWei.
+    pub const DEPOSIT_GWEI: u64 = 32_000_000_000;
     
     fn deposit_equals_record(dep: &Deposit, val: &ValidatorRecord) -> bool {
         (dep.deposit_data.deposit_input.pubkey == val.pubkey)
@@ -169,4 +169,19 @@ mod tests {
         assert_eq!(state.validator_registry.len(), 1);
         assert_eq!(state.validator_balances.len(), 1);
     }
+    
+    #[test]
+    fn test_process_deposit_invalid_proof_of_possession() {    
+        let mut state = BeaconState::default();
+        let mut deposit = Deposit::zero_with_rand_keypair();
+        let spec = ChainSpec::foundation();
+        deposit.deposit_data.value = DEPOSIT_GWEI;
+        deposit.deposit_data.deposit_input.proof_of_possession = create_proof_of_possession(&Keypair::random());
+        
+        let result = process_deposit(&mut state, &deposit, &spec);
+
+        assert_eq!(result, Err(ValidatorInductionError::InvaidProofOfPossession));
+        assert_eq!(state.validator_registry.len(), 0);
+        assert_eq!(state.validator_balances.len(), 0);
+    }
 }
diff --git a/beacon_chain/validator_induction/src/lib.rs b/beacon_chain/validator_induction/src/lib.rs
index c9f4dc67fd..f6dec3cfae 100644
--- a/beacon_chain/validator_induction/src/lib.rs
+++ b/beacon_chain/validator_induction/src/lib.rs
@@ -5,4 +5,4 @@ extern crate spec;
 
 mod inductor;
 
-pub use crate::inductor::{ValidatorInductionError};
+pub use crate::inductor::{ValidatorInductionError, process_deposit};