diff --git a/pkg/tbtc/chain_test.go b/pkg/tbtc/chain_test.go
index 97eef9e0c8..d8ad9bd2e4 100644
--- a/pkg/tbtc/chain_test.go
+++ b/pkg/tbtc/chain_test.go
@@ -41,6 +41,9 @@ type localChain struct {
 	dkgResultChallengeHandlersMutex sync.Mutex
 	dkgResultChallengeHandlers      map[int]func(submission *DKGResultChallengedEvent)
 
+	inactivityClaimedHandlersMutex sync.Mutex
+	inactivityClaimedHandlers      map[int]func(submission *InactivityClaimedEvent)
+
 	dkgMutex       sync.Mutex
 	dkgState       DKGState
 	dkgResult      *DKGChainResult
@@ -49,6 +52,9 @@ type localChain struct {
 	walletsMutex sync.Mutex
 	wallets      map[[20]byte]*WalletChainData
 
+	inactivityNonceMutex sync.Mutex
+	inactivityNonces     map[[32]byte]uint64
+
 	blocksByTimestampMutex sync.Mutex
 	blocksByTimestamp      map[uint64]uint64
 
@@ -553,9 +559,20 @@ func (lc *localChain) DKGParameters() (*DKGParameters, error) {
 }
 
 func (lc *localChain) OnInactivityClaimed(
-	func(event *InactivityClaimedEvent),
+	handler func(event *InactivityClaimedEvent),
 ) subscription.EventSubscription {
-	panic("unsupported")
+	lc.inactivityClaimedHandlersMutex.Lock()
+	defer lc.inactivityClaimedHandlersMutex.Unlock()
+
+	handlerID := generateHandlerID()
+	lc.inactivityClaimedHandlers[handlerID] = handler
+
+	return subscription.NewEventSubscription(func() {
+		lc.inactivityClaimedHandlersMutex.Lock()
+		defer lc.inactivityClaimedHandlersMutex.Unlock()
+
+		delete(lc.inactivityClaimedHandlers, handlerID)
+	})
 }
 
 func (lc *localChain) AssembleInactivityClaim(
@@ -567,7 +584,20 @@ func (lc *localChain) AssembleInactivityClaim(
 	*InactivityClaim,
 	error,
 ) {
-	panic("unsupported")
+	signingMembersIndexes := make([]group.MemberIndex, 0)
+	signaturesConcatenation := make([]byte, 0)
+	for memberIndex, signature := range signatures {
+		signingMembersIndexes = append(signingMembersIndexes, memberIndex)
+		signaturesConcatenation = append(signaturesConcatenation, signature...)
+	}
+
+	return &InactivityClaim{
+		WalletID:               walletID,
+		InactiveMembersIndices: inactiveMembersIndices,
+		HeartbeatFailed:        heartbeatFailed,
+		Signatures:             signaturesConcatenation,
+		SigningMembersIndices:  signingMembersIndexes,
+	}, nil
 }
 
 func (lc *localChain) SubmitInactivityClaim(
@@ -575,7 +605,33 @@ func (lc *localChain) SubmitInactivityClaim(
 	nonce *big.Int,
 	groupMembers []uint32,
 ) error {
-	panic("unsupported")
+	lc.inactivityClaimedHandlersMutex.Lock()
+	defer lc.inactivityClaimedHandlersMutex.Unlock()
+
+	lc.inactivityNonceMutex.Lock()
+	defer lc.inactivityNonceMutex.Unlock()
+
+	if nonce.Uint64() != lc.inactivityNonces[claim.WalletID] {
+		return fmt.Errorf("wrong inactivity claim nonce")
+	}
+
+	blockNumber, err := lc.blockCounter.CurrentBlock()
+	if err != nil {
+		return fmt.Errorf("failed to get the current block")
+	}
+
+	for _, handler := range lc.inactivityClaimedHandlers {
+		handler(&InactivityClaimedEvent{
+			WalletID:    claim.WalletID,
+			Nonce:       nonce,
+			Notifier:    "",
+			BlockNumber: blockNumber,
+		})
+	}
+
+	lc.inactivityNonces[claim.WalletID]++
+
+	return nil
 }
 
 func (lc *localChain) CalculateInactivityClaimHash(
@@ -598,7 +654,11 @@ func (lc *localChain) CalculateInactivityClaimHash(
 }
 
 func (lc *localChain) GetInactivityClaimNonce(walletID [32]byte) (*big.Int, error) {
-	panic("unsupported")
+	lc.inactivityNonceMutex.Lock()
+	defer lc.inactivityNonceMutex.Unlock()
+
+	nonce := lc.inactivityNonces[walletID]
+	return big.NewInt(int64(nonce)), nil
 }
 
 func (lc *localChain) PastDepositRevealedEvents(
@@ -1182,7 +1242,11 @@ func ConnectWithKey(
 		dkgResultChallengeHandlers: make(
 			map[int]func(submission *DKGResultChallengedEvent),
 		),
+		inactivityClaimedHandlers: make(
+			map[int]func(submission *InactivityClaimedEvent),
+		),
 		wallets:                            make(map[[20]byte]*WalletChainData),
+		inactivityNonces:                   make(map[[32]byte]uint64),
 		blocksByTimestamp:                  make(map[uint64]uint64),
 		blocksHashesByNumber:               make(map[uint64][32]byte),
 		pastDepositRevealedEvents:          make(map[[32]byte][]*DepositRevealedEvent),
diff --git a/pkg/tbtc/inactivity_test.go b/pkg/tbtc/inactivity_test.go
index d30bccde24..e9c4937676 100644
--- a/pkg/tbtc/inactivity_test.go
+++ b/pkg/tbtc/inactivity_test.go
@@ -1,6 +1,7 @@
 package tbtc
 
 import (
+	"context"
 	"fmt"
 	"math/big"
 	"reflect"
@@ -8,12 +9,130 @@ import (
 
 	"golang.org/x/crypto/sha3"
 
+	"github.com/keep-network/keep-core/pkg/bitcoin"
+	"github.com/keep-network/keep-core/pkg/chain"
+	"github.com/keep-network/keep-core/pkg/chain/local_v1"
+	"github.com/keep-network/keep-core/pkg/generator"
 	"github.com/keep-network/keep-core/pkg/internal/tecdsatest"
+	"github.com/keep-network/keep-core/pkg/net/local"
+	"github.com/keep-network/keep-core/pkg/operator"
 	"github.com/keep-network/keep-core/pkg/protocol/group"
 	"github.com/keep-network/keep-core/pkg/protocol/inactivity"
 	"github.com/keep-network/keep-core/pkg/tecdsa"
 )
 
+func TestInactivityClaimExecutor_ClaimInactivity(t *testing.T) {
+	executor := setupInactivityClaimExecutor(t)
+
+	ctx, cancelCtx := context.WithCancel(context.Background())
+	defer cancelCtx()
+
+	message := big.NewInt(100)
+
+	inactiveMembersIndexes := []group.MemberIndex{1, 4}
+
+	err := executor.claimInactivity(
+		ctx,
+		inactiveMembersIndexes,
+		true,
+		message,
+	)
+	if err != nil {
+		t.Fatal(err)
+	}
+}
+
+func setupInactivityClaimExecutor(t *testing.T) *inactivityClaimExecutor {
+	groupParameters := &GroupParameters{
+		GroupSize:       5,
+		GroupQuorum:     4,
+		HonestThreshold: 3,
+	}
+
+	operatorPrivateKey, operatorPublicKey, err := operator.GenerateKeyPair(
+		local_v1.DefaultCurve,
+	)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	localChain := ConnectWithKey(operatorPrivateKey)
+
+	localProvider := local.ConnectWithKey(operatorPublicKey)
+
+	operatorAddress, err := localChain.Signing().PublicKeyToAddress(
+		operatorPublicKey,
+	)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	var operators []chain.Address
+	for i := 0; i < groupParameters.GroupSize; i++ {
+		operators = append(operators, operatorAddress)
+	}
+
+	testData, err := tecdsatest.LoadPrivateKeyShareTestFixtures(
+		groupParameters.GroupSize,
+	)
+	if err != nil {
+		t.Fatalf("failed to load test data: [%v]", err)
+	}
+
+	signers := make([]*signer, len(testData))
+	for i := range testData {
+		privateKeyShare := tecdsa.NewPrivateKeyShare(testData[i])
+
+		signers[i] = &signer{
+			wallet: wallet{
+				publicKey:             privateKeyShare.PublicKey(),
+				signingGroupOperators: operators,
+			},
+			signingGroupMemberIndex: group.MemberIndex(i + 1),
+			privateKeyShare:         privateKeyShare,
+		}
+	}
+
+	keyStorePersistence := createMockKeyStorePersistence(t, signers...)
+
+	walletPublicKeyHash := bitcoin.PublicKeyHash(signers[0].wallet.publicKey)
+	ecdsaWalletID := [32]byte{1, 2, 3}
+
+	localChain.setWallet(
+		walletPublicKeyHash,
+		&WalletChainData{
+			EcdsaWalletID: ecdsaWalletID,
+		},
+	)
+
+	node, err := newNode(
+		groupParameters,
+		localChain,
+		newLocalBitcoinChain(),
+		localProvider,
+		keyStorePersistence,
+		&mockPersistenceHandle{},
+		generator.StartScheduler(),
+		&mockCoordinationProposalGenerator{},
+		Config{},
+	)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	executor, ok, err := node.getInactivityClaimExecutor(
+		signers[0].wallet.publicKey,
+	)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if !ok {
+		t.Fatal("node is supposed to control wallet signers")
+	}
+
+	return executor
+}
+
 func TestSignClaim_SigningSuccessful(t *testing.T) {
 	chain := Connect()
 	inactivityClaimSigner := newInactivityClaimSigner(chain)