diff --git a/discovery/gossiper.go b/discovery/gossiper.go
index 9e59d882..26ce951a 100644
--- a/discovery/gossiper.go
+++ b/discovery/gossiper.go
@@ -1019,7 +1019,7 @@ func (d *AuthenticatedGossiper) retransmitStaleChannels() error {
 		// existence.
 		if info.AuthProof == nil {
 			log.Debugf("Skipping retransmission of channel "+
-				"without AuthProof: %v", info)
+				"without AuthProof: %v", info.ChannelID)
 			return nil
 		}
 
diff --git a/fundingmanager.go b/fundingmanager.go
index d08b8dc8..d413a9e2 100644
--- a/fundingmanager.go
+++ b/fundingmanager.go
@@ -164,12 +164,6 @@ type fundingConfig struct {
 	// transaction information.
 	FeeEstimator lnwallet.FeeEstimator
 
-	// ArbiterChan allows the FundingManager to notify the BreachArbiter
-	// that a new channel has been created that should be observed to
-	// ensure that the channel counterparty hasn't broadcast an invalid
-	// commitment transaction.
-	ArbiterChan chan<- *lnwallet.LightningChannel
-
 	// Notifier is used by the FundingManager to determine when the
 	// channel's funding transaction has been confirmed on the blockchain
 	// so that the channel creation process can be completed.
@@ -235,13 +229,11 @@ type fundingConfig struct {
 	// contract breach.
 	RequiredRemoteDelay func(btcutil.Amount) uint16
 
-	// ArbitrateNewChan is to be called once a new channel enters the final
+	// WatchNewChannel is to be called once a new channel enters the final
 	// funding stage: waiting for on-chain confirmation. This method sends
 	// the channel to the ChainArbitrator so it can watch for any on-chain
 	// events related to the channel.
-	//
-	// TODO(roasbeef): pass signal as well?
-	ArbitrateNewChan func(*channeldb.OpenChannel) error
+	WatchNewChannel func(*channeldb.OpenChannel) error
 }
 
 // fundingManager acts as an orchestrator/bridge between the wallet's
@@ -1209,7 +1201,7 @@ func (f *fundingManager) handleFundingCreated(fmsg *fundingCreatedMsg) {
 	// Now that we've sent over our final signature for this channel, we'll
 	// send it to the ChainArbitrator so it can watch for any on-chain
 	// actions during this final confirmation stage.
-	if err := f.cfg.ArbitrateNewChan(completeChan); err != nil {
+	if err := f.cfg.WatchNewChannel(completeChan); err != nil {
 		fndgLog.Error("Unable to send new ChannelPoint(%v) for "+
 			"arbitration", fundingOut)
 	}
@@ -1348,9 +1340,7 @@ func (f *fundingManager) handleFundingSigned(fmsg *fundingSignedMsg) {
 	// we'll send the to be active channel to the ChainArbitrator so it can
 	// watch for any on-chin actions before the channel has fully
 	// confirmed.
-	//
-	// TODO(roasbeef): ensure later it also gets new signals
-	if err := f.cfg.ArbitrateNewChan(completeChan); err != nil {
+	if err := f.cfg.WatchNewChannel(completeChan); err != nil {
 		fndgLog.Error("Unable to send new ChannelPoint(%v) for "+
 			"arbitration", fundingPoint)
 	}
@@ -1407,7 +1397,7 @@ func (f *fundingManager) handleFundingSigned(fmsg *fundingSignedMsg) {
 		// Go on adding the channel to the channel graph, and crafting
 		// channel announcements.
 		lnChannel, err := lnwallet.NewLightningChannel(
-			nil, nil, nil, completeChan,
+			nil, nil, completeChan,
 		)
 		if err != nil {
 			fndgLog.Errorf("failed creating lnChannel: %v", err)
@@ -1415,7 +1405,6 @@ func (f *fundingManager) handleFundingSigned(fmsg *fundingSignedMsg) {
 		}
 		defer func() {
 			lnChannel.Stop()
-			lnChannel.CancelObserver()
 		}()
 
 		err = f.sendFundingLocked(completeChan, lnChannel, shortChanID)
@@ -1654,14 +1643,13 @@ func (f *fundingManager) handleFundingConfirmation(completeChan *channeldb.OpenC
 
 	// We create the state-machine object which wraps the database state.
 	lnChannel, err := lnwallet.NewLightningChannel(
-		nil, nil, nil, completeChan,
+		nil, nil, completeChan,
 	)
 	if err != nil {
 		return err
 	}
 	defer func() {
 		lnChannel.Stop()
-		lnChannel.CancelObserver()
 	}()
 
 	chanID := lnwire.NewChanIDFromOutPoint(&completeChan.FundingOutpoint)
@@ -1993,16 +1981,6 @@ func (f *fundingManager) handleFundingLocked(fmsg *fundingLockedMsg) {
 		fndgLog.Infof("Received duplicate fundingLocked for "+
 			"ChannelID(%v), ignoring.", chanID)
 		channel.Stop()
-		channel.CancelObserver()
-		return
-	}
-
-	// With the channel retrieved, we'll send the breach arbiter the new
-	// channel so it can watch for attempts to breach the channel's
-	// contract by the remote party.
-	select {
-	case f.cfg.ArbiterChan <- channel:
-	case <-f.quit:
 		return
 	}
 
diff --git a/lnd.go b/lnd.go
index 5c9ad680..e93b2d8c 100644
--- a/lnd.go
+++ b/lnd.go
@@ -268,7 +268,6 @@ func lndMain() error {
 				idPrivKey.PubKey())
 			return <-errChan
 		},
-		ArbiterChan:      server.breachArbiter.newContracts,
 		SendToPeer:       server.SendToPeer,
 		NotifyWhenOnline: server.NotifyWhenOnline,
 		FindPeer:         server.FindPeer,
@@ -284,7 +283,6 @@ func lndMain() error {
 					// TODO(rosbeef): populate baecon
 					return lnwallet.NewLightningChannel(
 						activeChainControl.signer,
-						activeChainControl.chainNotifier,
 						server.witnessBeacon,
 						channel)
 				}
@@ -359,9 +357,7 @@ func lndMain() error {
 			}
 			return delay
 		},
-		ArbitrateNewChan: func(c *channeldb.OpenChannel) error {
-			return server.chainArb.RequestChannelArbitration(c)
-		},
+		WatchNewChannel: server.chainArb.WatchNewChannel,
 	})
 	if err != nil {
 		return err
diff --git a/peer.go b/peer.go
index b93e0d77..eef29233 100644
--- a/peer.go
+++ b/peer.go
@@ -312,14 +312,6 @@ func (p *peer) loadActiveChannels(chans []*channeldb.OpenChannel) error {
 
 		peerLog.Infof("peerID(%v) loading ChannelPoint(%v)", p.id, chanPoint)
 
-		select {
-		case p.server.breachArbiter.newContracts <- lnChan:
-		case <-p.server.quit:
-			return fmt.Errorf("server shutting down")
-		case <-p.quit:
-			return fmt.Errorf("peer shutting down")
-		}
-
 		// Skip adding any permanently irreconcilable channels to the
 		// htlcswitch.
 		if dbChan.IsBorked {
@@ -1220,18 +1212,6 @@ out:
 				p.activeChanMtx.Unlock()
 				close(newChanReq.done)
 				newChanReq.channel.Stop()
-				newChanReq.channel.CancelObserver()
-
-				// We'll re-send our current channel to the
-				// breachArbiter to ensure that it has the most
-				// up to date version.
-				select {
-				case p.server.breachArbiter.newContracts <- currentChan:
-				case <-p.server.quit:
-					return
-				case <-p.quit:
-					return
-				}
 
 				// If we're being sent a new channel, and our
 				// existing channel doesn't have the next
diff --git a/rpcserver.go b/rpcserver.go
index 5e9c4e3c..42ec099b 100644
--- a/rpcserver.go
+++ b/rpcserver.go
@@ -825,7 +825,6 @@ func (r *rpcServer) CloseChannel(in *lnrpc.CloseChannelRequest,
 			return err
 		}
 		channel.Stop()
-		channel.CancelObserver()
 
 		_, bestHeight, err := r.server.cc.chainIO.GetBestBlock()
 		if err != nil {
@@ -986,7 +985,7 @@ func (r *rpcServer) fetchActiveChannel(chanPoint wire.OutPoint) (*lnwallet.Light
 	// Otherwise, we create a fully populated channel state machine which
 	// uses the db channel as backing storage.
 	return lnwallet.NewLightningChannel(
-		r.server.cc.wallet.Cfg.Signer, nil, nil, dbChan,
+		r.server.cc.wallet.Cfg.Signer, nil, dbChan,
 	)
 }