Firelight will roll back the blacklist process and unfreeze the affected wallets, involving 87 addresses and 117,500 FXRP

The on-chain guarantee protocol Firelight stated that some deposit addresses failed the 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 mentioned that the current mechanism screens blacklisted addresses or addresses sanctioned by OFAC during fund deployment and throughout the entire cycle. If an address is flagged during deployment or within the cycle, the funds will remain in the protocol until the cycle ends and will not generate rewards, but can still participate in the guarantee module for the remaining time of that cycle.

After the cycle ends, the funds will be returned, and the related wallets will be prohibited from accessing again. Firelight stated that this practice is unsustainable and will roll back the blacklist process in the coming days and unfreeze the affected wallets; the time and steps for retrieving funds will 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 input before any changes. Flare co-founder Hugo Philion stated that due to compliance policies, 84 Flare addresses have been unstaked by Firelight, and he personally will issue equivalent subsidies to those addresses that are not sanctioned and not widely blacklisted.