diff --git a/Dockerfile b/Dockerfile
index bbe8141..53f704c 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,6 +1,6 @@
 FROM python:3.11-slim
 WORKDIR /app
-RUN apt-get update && apt-get install -y --no-install-recommends ffmpeg && rm -rf /var/lib/apt/lists/*
+RUN apt-get update && apt-get install -y --no-install-recommends ffmpeg libolm-dev && rm -rf /var/lib/apt/lists/*
 COPY requirements.txt .
 RUN pip install --no-cache-dir -r requirements.txt
 COPY . .
diff --git a/bot.py b/bot.py
index e55c0b1..065bc0c 100644
--- a/bot.py
+++ b/bot.py
@@ -2,7 +2,17 @@ import os
 import asyncio
 import logging
 
-from nio import AsyncClient, LoginResponse, InviteMemberEvent
+from nio import (
+    AsyncClient,
+    AsyncClientConfig,
+    LoginResponse,
+    InviteMemberEvent,
+    KeyVerificationStart,
+    KeyVerificationCancel,
+    KeyVerificationKey,
+    KeyVerificationMac,
+    ToDeviceError,
+)
 from livekit import api
 
 logger = logging.getLogger("matrix-ai-bot")
@@ -14,11 +24,23 @@ LK_URL = os.environ["LIVEKIT_URL"]
 LK_KEY = os.environ["LIVEKIT_API_KEY"]
 LK_SECRET = os.environ["LIVEKIT_API_SECRET"]
 AGENT_NAME = os.environ.get("AGENT_NAME", "matrix-ai")
+STORE_PATH = os.environ.get("CRYPTO_STORE_PATH", "/data/crypto_store")
 
 
 class Bot:
     def __init__(self):
-        self.client = AsyncClient(HOMESERVER, BOT_USER)
+        config = AsyncClientConfig(
+            max_limit_exceeded=0,
+            max_timeouts=0,
+            store_sync_tokens=True,
+            encryption_enabled=True,
+        )
+        self.client = AsyncClient(
+            HOMESERVER,
+            BOT_USER,
+            store_path=STORE_PATH,
+            config=config,
+        )
         self.lkapi = None
         self.dispatched_rooms = set()
 
@@ -27,12 +49,20 @@ class Bot:
         if not isinstance(resp, LoginResponse):
             logger.error("Login failed: %s", resp)
             return
-        logger.info("Logged in as %s", resp.user_id)
+        logger.info("Logged in as %s (device %s)", resp.user_id, resp.device_id)
+
+        # Trust our own device keys
+        if self.client.should_upload_keys:
+            await self.client.keys_upload()
 
         self.lkapi = api.LiveKitAPI(LK_URL, LK_KEY, LK_SECRET)
         self.client.add_event_callback(self.on_invite, InviteMemberEvent)
+        self.client.add_to_device_callback(self.on_key_verification, KeyVerificationStart)
+        self.client.add_to_device_callback(self.on_key_verification, KeyVerificationKey)
+        self.client.add_to_device_callback(self.on_key_verification, KeyVerificationMac)
+        self.client.add_to_device_callback(self.on_key_verification, KeyVerificationCancel)
 
-        await self.client.sync_forever(timeout=30000)
+        await self.client.sync_forever(timeout=30000, full_state=True)
 
     async def on_invite(self, room, event: InviteMemberEvent):
         if event.state_key != BOT_USER:
@@ -54,6 +84,24 @@ class Bot:
         except Exception:
             logger.exception("Dispatch failed for %s", room.room_id)
 
+    async def on_key_verification(self, event):
+        """Auto-accept key verification requests."""
+        if isinstance(event, KeyVerificationStart):
+            sas = self.client.key_verifications.get(event.transaction_id)
+            if sas:
+                await self.client.accept_key_verification(event.transaction_id)
+                await self.client.to_device(sas.share_key())
+        elif isinstance(event, KeyVerificationKey):
+            sas = self.client.key_verifications.get(event.transaction_id)
+            if sas:
+                await self.client.confirm_short_auth_string(event.transaction_id)
+        elif isinstance(event, KeyVerificationMac):
+            sas = self.client.key_verifications.get(event.transaction_id)
+            if sas:
+                mac = sas.get_mac()
+                if not isinstance(mac, ToDeviceError):
+                    await self.client.to_device(mac)
+
     async def cleanup(self):
         await self.client.close()
         if self.lkapi:
@@ -61,6 +109,7 @@ class Bot:
 
 
 async def main():
+    os.makedirs(STORE_PATH, exist_ok=True)
     bot = Bot()
     try:
         await bot.start()
diff --git a/docker-compose.yml b/docker-compose.yml
index bcd62ec..9c33884 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -11,3 +11,8 @@ services:
     command: python bot.py
     env_file: .env
     restart: unless-stopped
+    volumes:
+      - bot-crypto:/data/crypto_store
+
+volumes:
+  bot-crypto:
diff --git a/requirements.txt b/requirements.txt
index a5d0b5c..7194249 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -4,4 +4,4 @@ livekit-plugins-elevenlabs>=1.4,<2.0
 livekit-plugins-silero>=1.4,<2.0
 livekit>=1.0,<2.0
 livekit-api>=1.0,<2.0
-matrix-nio>=0.25,<1.0
+matrix-nio[e2e]>=0.25,<1.0