diff --git a/NBitcoin.Tests/BIP38Tests.cs b/NBitcoin.Tests/BIP38Tests.cs
index 8a905c5fe..5c764d466 100644
--- a/NBitcoin.Tests/BIP38Tests.cs
+++ b/NBitcoin.Tests/BIP38Tests.cs
@@ -192,14 +192,28 @@ private void AssertSequenceEquals(LotSequence expected, LotSequence actual)
 		}
 
 
-		[Fact]
+		[Theory]
+		[InlineData(0, 0)]
+		[InlineData(1048575, 1024)]
+		[InlineData(1048575, 1025)]
+		[InlineData(1048575, 4095)]
 		[Trait("UnitTest", "UnitTest")]
-		public void CanParseLotSequence()
+		public void CanParseLotSequence(int lot, int sequenceNumber)
 		{
-			var sequence = new LotSequence(1048575, 1024);
+			var sequence = new LotSequence(lot, sequenceNumber);
 			var bytes = sequence.ToBytes();
 			var sequence2 = new LotSequence(bytes);
-			Assert.True(sequence.Lot == sequence2.Lot && sequence.Sequence == sequence.Sequence);
+			Assert.Equal(sequence.Lot, sequence2.Lot);
+			Assert.Equal(sequence.Sequence, sequence2.Sequence);
+		}
+
+		[Theory]
+		[InlineData(-1)]
+		[InlineData(4096)]
+		[Trait("UnitTest", "UnitTest")]
+		public void RejectsInvalidSequence(int sequence)
+		{
+			Assert.Throws<ArgumentOutOfRangeException>(() => new LotSequence(0, sequence));
 		}
 
 		[Fact]
diff --git a/NBitcoin/BIP38/BitcoinPassphraseCode.cs b/NBitcoin/BIP38/BitcoinPassphraseCode.cs
index 87f10d1a6..23ad4612c 100644
--- a/NBitcoin/BIP38/BitcoinPassphraseCode.cs
+++ b/NBitcoin/BIP38/BitcoinPassphraseCode.cs
@@ -68,7 +68,7 @@ public LotSequence(int lot, int sequence)
 		{
 			if (lot > 1048575 || lot < 0)
 				throw new ArgumentOutOfRangeException("lot");
-			if (sequence > 1024 || sequence < 0)
+			if (sequence > 4095 || sequence < 0)
 				throw new ArgumentOutOfRangeException("sequence");
 
 			_Lot = lot;
@@ -93,7 +93,7 @@ public LotSequence(byte[] bytes)
 				((uint)_Bytes[3] << 0);
 
 			_Lot = (int)(lotSequence / 4096);
-			_Sequence = (int)(lotSequence - _Lot);
+			_Sequence = (int)(lotSequence % 4096);
 		}
 
 		private readonly int _Lot;