diff --git a/CHANGELOG.md b/CHANGELOG.md
index 29158730c..cd5f3eafe 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -22,6 +22,7 @@ please see [changelog_updates.md](docs/dev/changelog_updates.md).
 
 - Refactoring: Config as Java Code ([#1051](https://github.com/sovity/edc-ce/pull/1051))
 - Fix issues with the Create Data Offer Endpoint ([PR#1055](https://github.com/sovity/edc-ce/pull/1055))
+- Interrupt the transfer process earlier for terminated contracts ([PR#1074](https://github.com/sovity/edc-ce/pull/1074))
 
 ### Deployment Migration Notes
 
diff --git a/CODE_OF_CONDUCT.md b/CODE_OF_CONDUCT.md
index cf40d820a..c8cf01f64 100644
--- a/CODE_OF_CONDUCT.md
+++ b/CODE_OF_CONDUCT.md
@@ -66,5 +66,5 @@ members of the project's leadership.
 
 ## Attribution
 
-This Code of Conduct is adapted from the [Contributor Covenant](http://contributor-covenant.org),
-version 1.4, available at http://contributor-covenant.org/version/1/4.
\ No newline at end of file
+This Code of Conduct is adapted from the [Contributor Covenant](http://www.contributor-covenant.org),
+version 1.4, available at http://www.contributor-covenant.org/version/1/4.
diff --git a/extensions/contract-termination/src/main/java/de/sovity/edc/extension/contacttermination/TransferProcessBlocker.java b/extensions/contract-termination/src/main/java/de/sovity/edc/extension/contacttermination/TransferProcessBlocker.java
index 256b8f179..e8deaca36 100644
--- a/extensions/contract-termination/src/main/java/de/sovity/edc/extension/contacttermination/TransferProcessBlocker.java
+++ b/extensions/contract-termination/src/main/java/de/sovity/edc/extension/contacttermination/TransferProcessBlocker.java
@@ -27,8 +27,7 @@ public class TransferProcessBlocker implements TransferProcessListener {
     private final DslContextFactory dslContextFactory;
     private final ContractAgreementIsTerminatedQuery contractAgreementIsTerminated;
 
-    @Override
-    public void preRequesting(TransferProcess process) {
+    private void stopIt(TransferProcess process) {
         val terminated = dslContextFactory.transactionResult(dsl ->
             contractAgreementIsTerminated.isTerminated(dsl, process.getContractId()));
 
@@ -37,4 +36,9 @@ public void preRequesting(TransferProcess process) {
             throw new IllegalStateException(message);
         }
     }
+
+    @Override
+    public void preCreated(TransferProcess process) {
+        stopIt(process);
+    }
 }
diff --git a/tests/build.gradle.kts b/tests/build.gradle.kts
index 255718f4b..a668dae79 100644
--- a/tests/build.gradle.kts
+++ b/tests/build.gradle.kts
@@ -11,9 +11,11 @@ dependencies {
     testAnnotationProcessor(libs.lombok)
     testCompileOnly(libs.lombok)
 
+    testImplementation(project(":extensions:database-direct-access"))
     testImplementation(project(":extensions:test-backend-controller"))
     testImplementation(project(":extensions:wrapper:clients:java-client"))
     testImplementation(project(":utils:test-utils"))
+    testImplementation(project(":utils:jooq-database-access"))
     testImplementation(libs.jsonUnit.assertj)
     testImplementation(libs.mockito.core)
     testImplementation(libs.assertj.core)
diff --git a/tests/src/test/java/de/sovity/edc/e2e/ContractTerminationTest.java b/tests/src/test/java/de/sovity/edc/e2e/ContractTerminationTest.java
index 084d98e1d..47e75316f 100644
--- a/tests/src/test/java/de/sovity/edc/e2e/ContractTerminationTest.java
+++ b/tests/src/test/java/de/sovity/edc/e2e/ContractTerminationTest.java
@@ -22,9 +22,11 @@
 import de.sovity.edc.client.gen.model.ContractTerminationRequest;
 import de.sovity.edc.client.gen.model.InitiateTransferRequest;
 import de.sovity.edc.client.gen.model.TransferHistoryEntry;
+import de.sovity.edc.ext.db.jooq.Tables;
 import de.sovity.edc.extension.contacttermination.ContractAgreementTerminationService;
 import de.sovity.edc.extension.contacttermination.ContractTerminationEvent;
 import de.sovity.edc.extension.contacttermination.ContractTerminationObserver;
+import de.sovity.edc.extension.db.directaccess.DslContextFactory;
 import de.sovity.edc.extension.e2e.extension.Consumer;
 import de.sovity.edc.extension.e2e.extension.E2eScenario;
 import de.sovity.edc.extension.e2e.extension.E2eTestExtension;
@@ -359,7 +361,9 @@ void doesntCrashWhenAgreementDoesntExist(
     void cantTransferDataAfterTerminated(
         E2eScenario scenario,
         ClientAndServer mockServer,
+        @Consumer DslContextFactory consumerDsl,
         @Consumer EdcClient consumerClient,
+        @Provider DslContextFactory providerDsl,
         @Provider EdcClient providerClient
     ) {
         val assetId = "asset-1";
@@ -410,6 +414,20 @@ void cantTransferDataAfterTerminated(
         awaitTerminationCount(consumerClient, 1);
         awaitTerminationCount(providerClient, 1);
 
+        val t = Tables.SOVITY_CONTRACT_TERMINATION;
+
+        val terminatedOnProviderSide = providerDsl.transactionResult((ptrx) ->
+            ptrx.selectCount()
+                .from(t)
+                .where(t.CONTRACT_AGREEMENT_ID.eq(contractAgreementId))
+                .execute());
+
+        assertThat(terminatedOnProviderSide).isEqualTo(1);
+        // pretend that the consumer didn't receive the termination message and let them try to get the data
+        consumerDsl.transactionResult((ctrx) -> ctrx.truncate(t).execute());
+        val terminatedOnConsumerSide = consumerDsl.transactionResult((ctrx) -> ctrx.fetchCount(t));
+        assertThat(terminatedOnConsumerSide).isEqualTo(0);
+
         // act
         consumerClient.uiApi().initiateTransfer(transferRequest);
         // first transfer attempt