diff --git a/integration-tests/helpers/create-admin-user.ts b/integration-tests/helpers/create-admin-user.ts
index dbd9608b7e..36810c3b9b 100644
--- a/integration-tests/helpers/create-admin-user.ts
+++ b/integration-tests/helpers/create-admin-user.ts
@@ -1,6 +1,7 @@
 import { IAuthModuleService, IUserModuleService } from "@medusajs/types"
 import { ModuleRegistrationName } from "@medusajs/utils"
 import jwt from "jsonwebtoken"
+import Scrypt from "scrypt-kdf"
 import { getContainer } from "../environment-helpers/use-container"
 
 export const adminHeaders = {
@@ -26,13 +27,16 @@ export const createAdminUser = async (
     email: "admin@medusa.js",
   })
 
+  const hashConfig = { logN: 15, r: 8, p: 1 }
+  const passwordHash = await Scrypt.kdf("somepassword", hashConfig)
+
   const authIdentity = await authModule.createAuthIdentities({
     provider_identities: [
       {
         provider: "emailpass",
         entity_id: "admin@medusa.js",
         provider_metadata: {
-          password: "somepassword",
+          password: passwordHash.toString("base64"),
         },
       },
     ],
@@ -55,5 +59,5 @@ export const createAdminUser = async (
 
   adminHeaders.headers["authorization"] = `Bearer ${token}`
 
-  return { user }
+  return { user, authIdentity }
 }
diff --git a/integration-tests/http/__tests__/auth/admin/auth.spec.ts b/integration-tests/http/__tests__/auth/admin/auth.spec.ts
index 1774b88a19..43bca91115 100644
--- a/integration-tests/http/__tests__/auth/admin/auth.spec.ts
+++ b/integration-tests/http/__tests__/auth/admin/auth.spec.ts
@@ -1,6 +1,6 @@
 import { generateResetPasswordTokenWorkflow } from "@medusajs/core-flows"
-import { medusaIntegrationTestRunner } from "medusa-test-utils"
 import jwt from "jsonwebtoken"
+import { medusaIntegrationTestRunner } from "medusa-test-utils"
 import {
   adminHeaders,
   createAdminUser,
diff --git a/integration-tests/http/__tests__/customer/admin/customer.spec.ts b/integration-tests/http/__tests__/customer/admin/customer.spec.ts
index 0dd5227685..8fb02867f4 100644
--- a/integration-tests/http/__tests__/customer/admin/customer.spec.ts
+++ b/integration-tests/http/__tests__/customer/admin/customer.spec.ts
@@ -1,3 +1,6 @@
+import { IAuthModuleService } from "@medusajs/types"
+import { ModuleRegistrationName } from "@medusajs/utils"
+import jwt from "jsonwebtoken"
 import { medusaIntegrationTestRunner } from "medusa-test-utils"
 import {
   adminHeaders,
@@ -13,9 +16,10 @@ medusaIntegrationTestRunner({
     let customer3
     let customer4
     let customer5
+    let container
     beforeEach(async () => {
-      const appContainer = getContainer()
-      await createAdminUser(dbConnection, adminHeaders, appContainer)
+      container = getContainer()
+      await createAdminUser(dbConnection, adminHeaders, container)
 
       customer1 = (
         await api.post(
@@ -392,5 +396,63 @@ medusaIntegrationTestRunner({
         )
       })
     })
+
+    describe("DELETE /admin/customers/:id", () => {
+      it("should delete a customer and update auth identity", async () => {
+        const registeredCustomerToken = (
+          await api.post("/auth/customer/emailpass/register", {
+            email: "test@email.com",
+            password: "password",
+          })
+        ).data.token
+
+        const customer = (
+          await api.post(
+            "/store/customers",
+            {
+              email: "test@email.com",
+            },
+            {
+              headers: {
+                Authorization: `Bearer ${registeredCustomerToken}`,
+              },
+            }
+          )
+        ).data.customer
+
+        const response = await api.delete(
+          `/admin/customers/${customer.id}`,
+          adminHeaders
+        )
+
+        expect(response.status).toEqual(200)
+        expect(response.data).toEqual(
+          expect.objectContaining({
+            id: customer.id,
+            deleted: true,
+            object: "customer",
+          })
+        )
+
+        const { auth_identity_id } = jwt.decode(registeredCustomerToken)
+
+        const authModule: IAuthModuleService = container.resolve(
+          ModuleRegistrationName.AUTH
+        )
+
+        const authIdentity = await authModule.retrieveAuthIdentity(
+          auth_identity_id
+        )
+
+        expect(authIdentity).toEqual(
+          expect.objectContaining({
+            id: authIdentity.id,
+            app_metadata: expect.not.objectContaining({
+              customer_id: expect.any(String),
+            }),
+          })
+        )
+      })
+    })
   },
 })
diff --git a/integration-tests/http/__tests__/user/admin/user.spec.ts b/integration-tests/http/__tests__/user/admin/user.spec.ts
index 2c07ad680b..b5eb5a18d6 100644
--- a/integration-tests/http/__tests__/user/admin/user.spec.ts
+++ b/integration-tests/http/__tests__/user/admin/user.spec.ts
@@ -1,3 +1,5 @@
+import { IAuthModuleService } from "@medusajs/types"
+import { ModuleRegistrationName } from "@medusajs/utils"
 import { medusaIntegrationTestRunner } from "medusa-test-utils"
 import {
   adminHeaders,
@@ -8,17 +10,18 @@ jest.setTimeout(30000)
 
 medusaIntegrationTestRunner({
   testSuite: ({ dbConnection, getContainer, api }) => {
-    let user
+    let user, container, authIdentity
 
     beforeEach(async () => {
-      const container = getContainer()
-      const { user: adminUser } = await createAdminUser(
+      container = getContainer()
+      const { user: adminUser, authIdentity: authId } = await createAdminUser(
         dbConnection,
         adminHeaders,
         container
       )
 
       user = adminUser
+      authIdentity = authId
     })
 
     describe("GET /admin/users/:id", () => {
@@ -102,20 +105,76 @@ medusaIntegrationTestRunner({
     })
 
     describe("DELETE /admin/users", () => {
-      it("Deletes a user", async () => {
-        const userId = "member-user"
-
+      it("Deletes a user and updates associated auth identity", async () => {
         const response = await api.delete(
-          `/admin/users/${userId}`,
+          `/admin/users/${user.id}`,
           adminHeaders
         )
 
         expect(response.status).toEqual(200)
         expect(response.data).toEqual({
-          id: userId,
+          id: user.id,
           object: "user",
           deleted: true,
         })
+
+        const authModule: IAuthModuleService = container.resolve(
+          ModuleRegistrationName.AUTH
+        )
+
+        const updatedAuthIdentity = await authModule.retrieveAuthIdentity(
+          authIdentity.id
+        )
+
+        // Ensure the auth identity has been updated to not contain the user's id
+        expect(updatedAuthIdentity).toEqual(
+          expect.objectContaining({
+            id: authIdentity.id,
+            app_metadata: expect.not.objectContaining({
+              user_id: user.id,
+            }),
+          })
+        )
+
+        // Authentication should still succeed
+        const authenticateToken = (
+          await api.post(`/auth/user/emailpass`, {
+            email: user.email,
+            password: "somepassword",
+          })
+        ).data.token
+
+        expect(authenticateToken).toEqual(expect.any(String))
+
+        // However, it should not be possible to access routes any longer
+        const meResponse = await api
+          .get(`/admin/users/me`, {
+            headers: {
+              authorization: `Bearer ${authenticateToken}`,
+            },
+          })
+          .catch((e) => e)
+
+        expect(meResponse.response.status).toEqual(401)
+      })
+
+      it("throws if you attempt to delete another user", async () => {
+        const userModule = container.resolve(ModuleRegistrationName.USER)
+
+        const userTwo = await userModule.createUsers({
+          email: "test@test.com",
+          password: "test",
+          role: "member",
+        })
+
+        const error = await api
+          .delete(`/admin/users/${userTwo.id}`, adminHeaders)
+          .catch((e) => e)
+
+        expect(error.response.status).toEqual(400)
+        expect(error.response.data.message).toEqual(
+          "You are not allowed to delete other users"
+        )
       })
 
       // TODO: Migrate when analytics config is implemented in 2.0
diff --git a/integration-tests/modules/__tests__/users/delete-user.spec.ts b/integration-tests/modules/__tests__/users/delete-user.spec.ts
deleted file mode 100644
index 83c74d01ce..0000000000
--- a/integration-tests/modules/__tests__/users/delete-user.spec.ts
+++ /dev/null
@@ -1,55 +0,0 @@
-import { IUserModuleService } from "@medusajs/types"
-import { ModuleRegistrationName } from "@medusajs/utils"
-import { medusaIntegrationTestRunner } from "medusa-test-utils"
-import { createAdminUser } from "../../../helpers/create-admin-user"
-
-jest.setTimeout(50000)
-
-const env = { MEDUSA_FF_MEDUSA_V2: true }
-const adminHeaders = {
-  headers: { "x-medusa-access-token": "test_token" },
-}
-
-medusaIntegrationTestRunner({
-  env,
-  testSuite: ({ dbConnection, getContainer, api }) => {
-    describe("DELETE /admin/users/:id", () => {
-      let appContainer
-      let userModuleService: IUserModuleService
-
-      beforeAll(async () => {
-        appContainer = getContainer()
-        userModuleService = appContainer.resolve(ModuleRegistrationName.USER)
-      })
-
-      beforeEach(async () => {
-        await createAdminUser(dbConnection, adminHeaders, appContainer)
-      })
-
-      it("should delete a single user", async () => {
-        const user = await userModuleService.createUsers({
-          email: "member@test.com",
-        })
-
-        const response = await api.delete(
-          `/admin/users/${user.id}`,
-          adminHeaders
-        )
-
-        expect(response.status).toEqual(200)
-        expect(response.data).toEqual({
-          id: user.id,
-          object: "user",
-          deleted: true,
-        })
-
-        const { response: deletedResponse } = await api
-          .get(`/admin/users/${user.id}`, adminHeaders)
-          .catch((e) => e)
-
-        expect(deletedResponse.status).toEqual(404)
-        expect(deletedResponse.data.type).toEqual("not_found")
-      })
-    })
-  },
-})
diff --git a/integration-tests/modules/__tests__/users/list-users.spec.ts b/integration-tests/modules/__tests__/users/list-users.spec.ts
deleted file mode 100644
index aaafa7706f..0000000000
--- a/integration-tests/modules/__tests__/users/list-users.spec.ts
+++ /dev/null
@@ -1,53 +0,0 @@
-import { IUserModuleService } from "@medusajs/types"
-import { ModuleRegistrationName } from "@medusajs/utils"
-import { medusaIntegrationTestRunner } from "medusa-test-utils"
-import { createAdminUser } from "../../../helpers/create-admin-user"
-
-jest.setTimeout(50000)
-
-const env = { MEDUSA_FF_MEDUSA_V2: true }
-const adminHeaders = {
-  headers: { "x-medusa-access-token": "test_token" },
-}
-
-medusaIntegrationTestRunner({
-  env,
-  testSuite: ({ dbConnection, getContainer, api }) => {
-    describe("GET /admin/users", () => {
-      let appContainer
-      let userModuleService: IUserModuleService
-
-      beforeAll(async () => {
-        appContainer = getContainer()
-        userModuleService = appContainer.resolve(ModuleRegistrationName.USER)
-      })
-
-      beforeEach(async () => {
-        await createAdminUser(dbConnection, adminHeaders, appContainer)
-      })
-
-      it("should list users", async () => {
-        await userModuleService.createUsers([
-          {
-            email: "member@test.com",
-          },
-        ])
-
-        const response = await api.get(`/admin/users`, adminHeaders)
-
-        expect(response.status).toEqual(200)
-        expect(response.data).toEqual({
-          users: expect.arrayContaining([
-            expect.objectContaining({
-              email: "admin@medusa.js",
-            }),
-            expect.objectContaining({ email: "member@test.com" }),
-          ]),
-          count: 2,
-          offset: 0,
-          limit: 50,
-        })
-      })
-    })
-  },
-})
diff --git a/integration-tests/modules/__tests__/users/retrieve-user.spec.ts b/integration-tests/modules/__tests__/users/retrieve-user.spec.ts
deleted file mode 100644
index 6d911ea5df..0000000000
--- a/integration-tests/modules/__tests__/users/retrieve-user.spec.ts
+++ /dev/null
@@ -1,43 +0,0 @@
-import { IUserModuleService } from "@medusajs/types"
-import { ModuleRegistrationName } from "@medusajs/utils"
-import { medusaIntegrationTestRunner } from "medusa-test-utils"
-import { createAdminUser } from "../../../helpers/create-admin-user"
-
-jest.setTimeout(50000)
-
-const env = { MEDUSA_FF_MEDUSA_V2: true }
-const adminHeaders = {
-  headers: { "x-medusa-access-token": "test_token" },
-}
-
-medusaIntegrationTestRunner({
-  env,
-  testSuite: ({ dbConnection, getContainer, api }) => {
-    describe("GET /admin/users/:id", () => {
-      let appContainer
-      let userModuleService: IUserModuleService
-
-      beforeAll(async () => {
-        appContainer = getContainer()
-        userModuleService = appContainer.resolve(ModuleRegistrationName.USER)
-      })
-
-      beforeEach(async () => {
-        await createAdminUser(dbConnection, adminHeaders, appContainer)
-      })
-
-      it("should retrieve a single user", async () => {
-        const user = await userModuleService.createUsers({
-          email: "member@test.com",
-        })
-
-        const response = await api.get(`/admin/users/${user.id}`, adminHeaders)
-
-        expect(response.status).toEqual(200)
-        expect(response.data.user).toEqual(
-          expect.objectContaining({ email: "member@test.com" })
-        )
-      })
-    })
-  },
-})
diff --git a/packages/core/core-flows/src/auth/steps/set-auth-app-metadata.ts b/packages/core/core-flows/src/auth/steps/set-auth-app-metadata.ts
index 3bd25be381..d853385b4f 100644
--- a/packages/core/core-flows/src/auth/steps/set-auth-app-metadata.ts
+++ b/packages/core/core-flows/src/auth/steps/set-auth-app-metadata.ts
@@ -6,7 +6,7 @@ import { isDefined, ModuleRegistrationName } from "@medusajs/utils"
 export type SetAuthAppMetadataStepInput = {
   authIdentityId: string
   actorType: string
-  value: string
+  value: string | null // null means delete the key
 }
 
 export const setAuthAppMetadataStepId = "set-auth-app-metadata"
@@ -24,10 +24,13 @@ export const setAuthAppMetadataStep = createStep(
     const authIdentity = await service.retrieveAuthIdentity(data.authIdentityId)
 
     const appMetadata = authIdentity.app_metadata || {}
-    if (isDefined(appMetadata[key])) {
+
+    // If the value is null, we are deleting the association with an actor
+    if (isDefined(appMetadata[key]) && data.value !== null) {
       throw new Error(`Key ${key} already exists in app metadata`)
     }
 
+    const oldValue = appMetadata[key]
     appMetadata[key] = data.value
 
     await service.updateAuthIdentities({
@@ -38,14 +41,16 @@ export const setAuthAppMetadataStep = createStep(
     return new StepResponse(authIdentity, {
       id: authIdentity.id,
       key: key,
+      value: data.value,
+      oldValue,
     })
   },
-  async (idAndKey, { container }) => {
-    if (!idAndKey) {
+  async (idAndKeyAndValue, { container }) => {
+    if (!idAndKeyAndValue) {
       return
     }
 
-    const { id, key } = idAndKey
+    const { id, key, oldValue, value } = idAndKeyAndValue
 
     const service = container.resolve<IAuthModuleService>(
       ModuleRegistrationName.AUTH
@@ -54,7 +59,11 @@ export const setAuthAppMetadataStep = createStep(
     const authIdentity = await service.retrieveAuthIdentity(id)
 
     const appMetadata = authIdentity.app_metadata || {}
-    if (isDefined(appMetadata[key])) {
+
+    // If the value is null, we WERE deleting the association with an actor, so we need to restore it
+    if (value === null) {
+      appMetadata[key] = oldValue
+    } else {
       delete appMetadata[key]
     }
 
diff --git a/packages/core/core-flows/src/customer/workflows/index.ts b/packages/core/core-flows/src/customer/workflows/index.ts
index 97c7505c37..35fbedce24 100644
--- a/packages/core/core-flows/src/customer/workflows/index.ts
+++ b/packages/core/core-flows/src/customer/workflows/index.ts
@@ -1,7 +1,9 @@
-export * from "./create-customers"
-export * from "./update-customers"
-export * from "./delete-customers"
-export * from "./create-customer-account"
 export * from "./create-addresses"
-export * from "./update-addresses"
+export * from "./create-customer-account"
+export * from "./create-customers"
 export * from "./delete-addresses"
+export * from "./delete-customers"
+export * from "./remove-customer-account"
+export * from "./update-addresses"
+export * from "./update-customers"
+
diff --git a/packages/core/core-flows/src/customer/workflows/remove-customer-account.ts b/packages/core/core-flows/src/customer/workflows/remove-customer-account.ts
new file mode 100644
index 0000000000..830ab20b64
--- /dev/null
+++ b/packages/core/core-flows/src/customer/workflows/remove-customer-account.ts
@@ -0,0 +1,79 @@
+import { MedusaError } from "@medusajs/utils"
+import {
+  WorkflowData,
+  WorkflowResponse,
+  createWorkflow,
+  transform,
+  when,
+} from "@medusajs/workflows-sdk"
+import { setAuthAppMetadataStep } from "../../auth"
+import { useRemoteQueryStep } from "../../common"
+import { deleteCustomersWorkflow } from "./delete-customers"
+
+export type RemoveCustomerAccountWorkflowInput = {
+  customerId: string
+}
+export const removeCustomerAccountWorkflowId = "remove-customer-account"
+/**
+ * This workflow deletes a user and remove the association in the auth identity.
+ */
+export const removeCustomerAccountWorkflow = createWorkflow(
+  removeCustomerAccountWorkflowId,
+  (
+    input: WorkflowData<RemoveCustomerAccountWorkflowInput>
+  ): WorkflowResponse<string> => {
+    const customers = useRemoteQueryStep({
+      entry_point: "customer",
+      fields: ["id", "has_account"],
+      variables: {
+        id: input.customerId,
+      },
+    }).config({ name: "get-customer" })
+
+    deleteCustomersWorkflow.runAsStep({
+      input: {
+        ids: [input.customerId],
+      },
+    })
+
+    when({ customers }, ({ customers }) => {
+      return !!customers[0]?.has_account
+    }).then(() => {
+      const authIdentities = useRemoteQueryStep({
+        entry_point: "auth_identity",
+        fields: ["id"],
+        variables: {
+          filters: {
+            app_metadata: {
+              customer_id: input.customerId,
+            },
+          },
+        },
+      })
+
+      const authIdentity = transform(
+        { authIdentities },
+        ({ authIdentities }) => {
+          const authIdentity = authIdentities[0]
+
+          if (!authIdentity) {
+            throw new MedusaError(
+              MedusaError.Types.NOT_FOUND,
+              "Auth identity not found"
+            )
+          }
+
+          return authIdentity
+        }
+      )
+
+      setAuthAppMetadataStep({
+        authIdentityId: authIdentity.id,
+        actorType: "customer",
+        value: null,
+      })
+    })
+
+    return new WorkflowResponse(input.customerId)
+  }
+)
diff --git a/packages/core/core-flows/src/user/workflows/index.ts b/packages/core/core-flows/src/user/workflows/index.ts
index 5dd813b7a9..1856a7688a 100644
--- a/packages/core/core-flows/src/user/workflows/index.ts
+++ b/packages/core/core-flows/src/user/workflows/index.ts
@@ -1,5 +1,6 @@
 export * from "./create-user-account"
 export * from "./create-users"
 export * from "./delete-users"
+export * from "./remove-user-account"
 export * from "./update-users"
 
diff --git a/packages/core/core-flows/src/user/workflows/remove-user-account.ts b/packages/core/core-flows/src/user/workflows/remove-user-account.ts
new file mode 100644
index 0000000000..0052943876
--- /dev/null
+++ b/packages/core/core-flows/src/user/workflows/remove-user-account.ts
@@ -0,0 +1,61 @@
+import {
+  WorkflowData,
+  WorkflowResponse,
+  createWorkflow,
+  transform,
+  when,
+} from "@medusajs/workflows-sdk"
+import { setAuthAppMetadataStep } from "../../auth"
+import { useRemoteQueryStep } from "../../common"
+import { deleteUsersWorkflow } from "./delete-users"
+
+export type RemoveUserAccountWorkflowInput = {
+  userId: string
+}
+export const removeUserAccountWorkflowId = "remove-user-account"
+/**
+ * This workflow deletes a user and remove the association in the auth identity.
+ */
+export const removeUserAccountWorkflow = createWorkflow(
+  removeUserAccountWorkflowId,
+  (
+    input: WorkflowData<RemoveUserAccountWorkflowInput>
+  ): WorkflowResponse<string> => {
+    deleteUsersWorkflow.runAsStep({
+      input: {
+        ids: [input.userId],
+      },
+    })
+
+    const authIdentities = useRemoteQueryStep({
+      entry_point: "auth_identity",
+      fields: ["id"],
+      variables: {
+        filters: {
+          app_metadata: {
+            user_id: input.userId,
+          },
+        },
+      },
+    })
+
+    const authIdentity = transform(
+      { authIdentities, input },
+      ({ authIdentities }) => {
+        return authIdentities[0]
+      }
+    )
+
+    when({ authIdentity }, ({ authIdentity }) => {
+      return !!authIdentity
+    }).then(() => {
+      setAuthAppMetadataStep({
+        authIdentityId: authIdentity.id,
+        actorType: "user",
+        value: null,
+      })
+    })
+
+    return new WorkflowResponse(input.userId)
+  }
+)
diff --git a/packages/medusa/src/api/admin/customers/[id]/route.ts b/packages/medusa/src/api/admin/customers/[id]/route.ts
index dddf084a21..f2c675c843 100644
--- a/packages/medusa/src/api/admin/customers/[id]/route.ts
+++ b/packages/medusa/src/api/admin/customers/[id]/route.ts
@@ -1,5 +1,5 @@
 import {
-  deleteCustomersWorkflow,
+  removeCustomerAccountWorkflow,
   updateCustomersWorkflow,
 } from "@medusajs/core-flows"
 import { AdditionalData, HttpTypes } from "@medusajs/types"
@@ -68,10 +68,11 @@ export const DELETE = async (
   res: MedusaResponse<HttpTypes.AdminCustomerDeleteResponse>
 ) => {
   const id = req.params.id
-  const deleteCustomers = deleteCustomersWorkflow(req.scope)
 
-  await deleteCustomers.run({
-    input: { ids: [id] },
+  await removeCustomerAccountWorkflow(req.scope).run({
+    input: {
+      customerId: id,
+    },
   })
 
   res.status(200).json({
diff --git a/packages/medusa/src/api/admin/users/[id]/route.ts b/packages/medusa/src/api/admin/users/[id]/route.ts
index fb579930f8..c6ee0ccd08 100644
--- a/packages/medusa/src/api/admin/users/[id]/route.ts
+++ b/packages/medusa/src/api/admin/users/[id]/route.ts
@@ -1,4 +1,7 @@
-import { deleteUsersWorkflow, updateUsersWorkflow } from "@medusajs/core-flows"
+import {
+  removeUserAccountWorkflow,
+  updateUsersWorkflow,
+} from "@medusajs/core-flows"
 import { HttpTypes, UpdateUserDTO } from "@medusajs/types"
 import {
   AuthenticatedMedusaRequest,
@@ -10,8 +13,8 @@ import {
   MedusaError,
   remoteQueryObjectFromString,
 } from "@medusajs/utils"
-import { AdminUpdateUserType } from "../validators"
 import { refetchUser } from "../helpers"
+import { AdminUpdateUserType } from "../validators"
 
 // Get user
 export const GET = async (
@@ -71,10 +74,19 @@ export const DELETE = async (
   res: MedusaResponse<HttpTypes.AdminUserDeleteResponse>
 ) => {
   const { id } = req.params
-  const workflow = deleteUsersWorkflow(req.scope)
+  const { actor_id } = req.auth_context
+
+  if (actor_id !== id) {
+    throw new MedusaError(
+      MedusaError.Types.NOT_ALLOWED,
+      "You are not allowed to delete other users"
+    )
+  }
+
+  const workflow = removeUserAccountWorkflow(req.scope)
 
   await workflow.run({
-    input: { ids: [id] },
+    input: { userId: id },
   })
 
   res.status(200).json({