Firelight to Roll Back Blacklist Process and Unblock Affected Flare Wallets
Foresight News reported that Firelight, an on-chain protection protocol, said some deposit addresses failed a funds screening check, causing the assets to be unstaked and returned to their original addresses. The issue affected 87 addresses and 117,500 FXRP.According to Foresight News, Firelight said its current mechanism screens blacklist and OFAC-sanctioned addresses when funds are deployed and throughout the cycle. If an address is flagged at deployment or during the cycle, the funds remain in the protocol until the cycle ends, earn no rewards, and can still participate in the remaining protection module for that cycle.At the end of the cycle, the funds are returned and the related wallets are barred from reconnecting. Firelight said the approach is not sustainable and 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.The protocol said its security, KYC, and institutional standards will remain unchanged, and it plans to develop a new approach over the next few weeks that will not disrupt users. It added that it will seek community feedback before making changes.Flare co-founder Hugo Philion said 84 Flare addresses were unstaked by Firelight because of compliance policy. He said he will personally provide equal compensation to addresses that are not sanctioned and are not broadly blacklisted.