diff --git a/server/bin/migrations/UserInDatabase2.ts b/server/bin/migrations/UserInDatabase2.ts
new file mode 100644
index 00000000..e98d41e3
--- /dev/null
+++ b/server/bin/migrations/UserInDatabase2.ts
@@ -0,0 +1,96 @@
+import {AccessLevel} from '../../../shared/schema/Auth';
+import Users from '../../models/Users';
+
+import type {Credentials} from '../../../shared/schema/Auth';
+import type {RTorrentConnectionSettings} from '../../../shared/schema/ClientConnectionSettings';
+import type {UserInDatabase1} from './types/UserInDatabase1';
+
+const migrationError = (err?: Error) => {
+  if (err) {
+    console.error(err);
+  }
+  console.error('Migration failed. You need to reset the databases manually.');
+  process.exit();
+};
+
+const migration = () => {
+  return new Promise((resolve, _reject) => {
+    Users.listUsers((users, err) => {
+      if (users == null || err) {
+        return;
+      }
+
+      Promise.all(
+        users.map((user) => {
+          return new Promise((migratedResolve, _migratedReject) => {
+            if (user.client != null) {
+              // No need to migrate.
+              migratedResolve();
+              return;
+            }
+
+            const userV1 = (user as unknown) as UserInDatabase1;
+
+            let connectionSettings: RTorrentConnectionSettings | null = null;
+            if (userV1.socketPath != null) {
+              connectionSettings = {
+                client: 'rTorrent',
+                type: 'socket',
+                version: 1,
+                socket: userV1.socketPath,
+              };
+            } else if (userV1.host != null && userV1.port != null) {
+              connectionSettings = {
+                client: 'rTorrent',
+                type: 'tcp',
+                version: 1,
+                host: userV1.host,
+                port: userV1.port,
+              };
+            }
+
+            if (connectionSettings == null) {
+              migrationError(new Error('Corrupted client connection settings.'));
+              return;
+            }
+
+            const userV2: Credentials = {
+              username: userV1.username,
+              password: userV1.password,
+              client: connectionSettings,
+              level: userV1.isAdmin ? AccessLevel.ADMINISTRATOR : AccessLevel.USER,
+            };
+
+            Users.removeUser(userV1.username, (id, errRemoval) => {
+              if (errRemoval) {
+                migrationError(errRemoval);
+                return;
+              }
+
+              if (id == null) {
+                migrationError(new Error('Wrong user ID'));
+                return;
+              }
+
+              Users.createUser(
+                userV2,
+                (_username, errCreation) => {
+                  if (errCreation) {
+                    migrationError(errCreation);
+                  }
+
+                  migratedResolve();
+                },
+                false,
+              );
+            });
+          });
+        }),
+      ).then(() => {
+        resolve();
+      });
+    });
+  });
+};
+
+export default migration;
diff --git a/server/bin/migrations/run.ts b/server/bin/migrations/run.ts
index 2f3c8e46..81921e8b 100644
--- a/server/bin/migrations/run.ts
+++ b/server/bin/migrations/run.ts
@@ -1,8 +1,6 @@
-const migrations = [
-  () => {
-    // do nothing. there is no migration at the moment.
-  },
-];
+import UserInDatabase2 from './UserInDatabase2';
+
+const migrations = [UserInDatabase2];
 
 const migrate = () => Promise.all(migrations.map((migration) => migration()));
 
diff --git a/server/bin/migrations/types/UserInDatabase1.ts b/server/bin/migrations/types/UserInDatabase1.ts
new file mode 100644
index 00000000..9dbd6bfd
--- /dev/null
+++ b/server/bin/migrations/types/UserInDatabase1.ts
@@ -0,0 +1,10 @@
+// Deprecated data structure. Not used outside of migration.
+export type UserInDatabase1 = {
+  _id: string;
+  username: string;
+  password: string;
+  host?: string | null;
+  port?: number | null;
+  socketPath?: string | null;
+  isAdmin: boolean;
+};
diff --git a/server/bin/start.ts b/server/bin/start.ts
index 96bae1cd..a44153c2 100755
--- a/server/bin/start.ts
+++ b/server/bin/start.ts
@@ -4,13 +4,16 @@ import chalk from 'chalk';
 
 import enforcePrerequisites from './enforce-prerequisites';
 import migrateData from './migrations/run';
-import startWebServer from './web-server';
 
 process.env.NODE_ENV = process.env.NODE_ENV !== 'development' ? 'production' : 'development';
 
 enforcePrerequisites()
   .then(migrateData)
-  .then(startWebServer)
+  .then(() => {
+    // We do this because we don't want the side effects of importing server functions before migration is completed.
+    const startWebServer = require('./web-server').default; // eslint-disable-line global-require
+    return startWebServer();
+  })
   .catch((error) => {
     console.log(chalk.red('Failed to start Flood:'));
     console.trace(error);
diff --git a/server/models/Users.ts b/server/models/Users.ts
index f1bf997a..6248a0f4 100644
--- a/server/models/Users.ts
+++ b/server/models/Users.ts
@@ -75,7 +75,8 @@ class Users {
 
   createUser(
     credentials: Credentials,
-    callback: (data: {username: Required<Credentials['username']>} | null, error?: Error) => void,
+    callback: (user: UserInDatabase | null, error?: Error) => void,
+    shouldHash = true,
   ): void {
     if (this.db == null) {
       return callback(null, new Error('Users database is not ready.'));
@@ -87,7 +88,7 @@ class Users {
         this.db.insert(
           {
             ...credentials,
-            password: hash.encoded,
+            password: shouldHash ? hash.encoded : credentials.password,
           },
           (error, user) => {
             if (error) {
@@ -98,8 +99,7 @@ class Users {
               return callback(null, error);
             }
 
-            services.bootstrapServicesForUser(user as UserInDatabase);
-            return callback({username: credentials.username});
+            return callback(user as UserInDatabase);
           },
         );
       })
diff --git a/server/routes/api/auth.ts b/server/routes/api/auth.ts
index 9222076a..31082428 100644
--- a/server/routes/api/auth.ts
+++ b/server/routes/api/auth.ts
@@ -92,11 +92,7 @@ router.post<unknown, unknown, AuthAuthenticationOptions>('/authenticate', (req,
 
   const credentials = parsedResult.data;
 
-  Users.comparePassword(credentials, (isMatch, level, err) => {
-    if (err) {
-      return;
-    }
-
+  Users.comparePassword(credentials, (isMatch, level, _err) => {
     if (isMatch === true && level != null) {
       sendAuthenticationResponse(res, {
         ...credentials,
@@ -164,14 +160,16 @@ router.post<unknown, unknown, AuthRegistrationOptions, {cookie: string}>('/regis
   const credentials = parsedResult.data;
 
   // Attempt to save the user
-  Users.createUser(credentials, (createUserResponse, createUserError) => {
-    if (createUserError) {
-      ajaxUtil.getResponseFn(res)(createUserResponse, createUserError);
+  Users.createUser(credentials, (user, error) => {
+    if (error || user == null) {
+      ajaxUtil.getResponseFn(res)({username: credentials.username}, error);
       return;
     }
 
+    services.bootstrapServicesForUser(user);
+
     if (req.query.cookie === 'false') {
-      ajaxUtil.getResponseFn(res)(createUserResponse);
+      ajaxUtil.getResponseFn(res)({username: user.username});
       return;
     }