Firelight to Roll Back Blacklist Process and Unblock Affected Wallets, Involving 87 Addresses and 117,500 FXRP

Odaily News: On-chain insurance protocol Firelight has stated that some deposit addresses failed fund screening, and the related funds have been unstaked and returned to the original addresses, involving 87 addresses and a total of 117,500 FXRP. Firelight said that its current mechanism screens blacklisted addresses or OFAC-sanctioned addresses at the time of fund deployment and throughout the entire cycle. If an address is flagged at deployment or during the cycle, the funds will remain in the protocol until the end of the cycle without generating rewards, but can still participate in the insurance module for the remainder of that cycle. After the cycle ends, the funds will be returned, and the relevant wallets will be prohibited from re-accessing. Firelight stated that this approach is unsustainable and that it will roll back the blacklist process and unblock affected wallets in the coming days, with the timing and steps for recovering funds to be announced separately. Security, KYC, and institutional standards remain unchanged, and Firelight will develop a new plan that does not affect users in the coming weeks, and will seek community feedback before making changes. Flare co-founder Hugo Philion stated that due to compliance policies, 84 Flare addresses were unstaked by Firelight, and he personally will provide equal compensation to the addresses among them that are not sanctioned and not widely blacklisted.