"Hello, Yes, this is helpful, we now see the swap that you haven't received. Those on-chain funds have been flagged by our system and cannot be imported into a lightning channel. You will need to send them elsewhere, as Phoenix cannot accept them. Unfortunately, they currently need cryptographic signatures from both your wallet and our node to be moved to a different address." - Phoenix Wallet This is why #Monero Its crazy for me to think Bitcoin would be the next global currency for payments or for saving. This is not acceptable. This is not Phoenix Wallets fault. This is bitcoins design flaw. Privacy is not about protecting criminals. Now I 'own' ๐Ÿคก bitcoin that is flagged. That's not fungible. Bitcoin is not fungible. It's a huge flaw.

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Did they indicate what the problem with the utxo was? Does it have CJ history or are you on FATF sanctioned or something?
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