Firelight to Roll Back Blacklist Process and Unfreeze 117,500 FXRP Across 87 Addresses

ChainCatcher report: The on-chain insurance protocol Firelight stated that funds deposited to certain addresses, which failed fund screening, have been unstaked and returned to their original addresses, affecting 87 addresses totaling 117,500 FXRP. Firelight explained that its current mechanism screens for blacklisted or OFAC-sanctioned addresses both at the time of fund deployment and throughout the entire cycle. If an address is flagged during deployment or within the cycle, the funds remain within the protocol until the cycle ends without earning rewards, but can still participate in the insurance module for the remainder of the cycle. Upon cycle completion, funds will be returned, and the associated wallets will be permanently barred from re-accessing the protocol. Firelight noted that this approach is unsustainable and will roll back the blacklist process and unblock affected wallets within the coming days; details regarding the timing and procedure for fund retrieval will be announced separately. Security, KYC, and institutional standards remain unchanged; Firelight will develop a new user-impact-free solution over the coming weeks and seek community feedback prior to implementation. Flare co-founder Hugo Philion stated that due to compliance policies, 84 Flare addresses had their stakes withdrawn by Firelight, and he personally will provide matching grants to those addresses that are not sanctioned and not widely listed on blacklists.