diff --git a/priv_key.go b/priv_key.go
index 61d373f60..82e1cfced 100644
--- a/priv_key.go
+++ b/priv_key.go
@@ -83,9 +83,10 @@ func (privKey PrivKeyEd25519) Generate(index int) PrivKeyEd25519 {
 		panic(err)
 	}
 	newBytes := Sha256(bz)
-	var newKey [64]byte
-	copy(newKey[:], newBytes)
-	return PrivKeyEd25519(newKey)
+	newKey := new([64]byte)
+	copy(newKey[:32], newBytes)
+	ed25519.MakePublicKey(newKey)
+	return PrivKeyEd25519(*newKey)
 }
 
 func GenPrivKeyEd25519() PrivKeyEd25519 {
diff --git a/priv_key_test.go b/priv_key_test.go
index 3fbfba34d..6abe36ac5 100644
--- a/priv_key_test.go
+++ b/priv_key_test.go
@@ -1,15 +1,21 @@
-package crypto
-
-/*
+package crypto_test
 
 import (
-	"fmt"
 	"testing"
 
 	"github.com/stretchr/testify/assert"
-	"github.com/stretchr/testify/require"
+	crypto "github.com/tendermint/go-crypto"
 )
 
+func TestGeneratePrivKey(t *testing.T) {
+	testPriv := crypto.GenPrivKeyEd25519()
+	testGenerate := testPriv.Generate(1)
+	signBytes := []byte("something to sign")
+	assert.True(t, testGenerate.PubKey().VerifyBytes(signBytes, testGenerate.Sign(signBytes)))
+}
+
+/*
+
 type BadKey struct {
 	PrivKeyEd25519
 }