diff --git a/src/status_im/contact/block.cljs b/src/status_im/contact/block.cljs
index 0c8af551a2..3338309864 100644
--- a/src/status_im/contact/block.cljs
+++ b/src/status_im/contact/block.cljs
@@ -37,7 +37,9 @@
   (let [fxs (map #(clean-up-chat public-key %) chats)]
     (apply fx/merge
            cofx
-           {:db (update db :chats dissoc public-key)}
+           {:db (-> db
+                    (update :chats dissoc public-key)
+                    (assoc-in [:contacts/contacts public-key :added] false))}
            fxs)))
 
 (fx/defn block-contact
@@ -46,7 +48,9 @@
   (let [contact (-> (contact.db/public-key->contact
                      (:contacts/contacts db)
                      public-key)
-                    (assoc :last-updated now :blocked true))
+                    (assoc :last-updated now
+                           :blocked true
+                           :added false))
         from-one-to-one-chat? (not (get-in db [:chats (:current-chat-id db) :group-chat]))]
     (fx/merge cofx
               {:db (-> db
@@ -62,7 +66,7 @@
                 (navigation/navigate-back)))))
 
 (fx/defn unblock-contact
-  {:events [:contact.ui/unblock-contact-pressed]}
+  {:events [:contact.ui/unblock-contact-pressed ::contact-unblocked]}
   [{:keys [db now] :as cofx} public-key]
   (let [contact (-> (get-in db [:contacts/contacts public-key])
                     (assoc :last-updated now :blocked false))]
diff --git a/src/status_im/contact/core.cljs b/src/status_im/contact/core.cljs
index 2f226e5e9f..1d33a8772b 100644
--- a/src/status_im/contact/core.cljs
+++ b/src/status_im/contact/core.cljs
@@ -55,7 +55,10 @@
                            (conj [:offload-messages constants/timeline-chat-id])
 
                            (:blocked contact)
-                           (conj [::contact.block/contact-blocked contact chats])))
+                           (conj [::contact.block/contact-blocked contact chats])
+
+                           (contact.db/blocked? db public-key)
+                           (conj [::contact.block/contact-unblocked public-key])))
                        contacts)})
 
 (fx/defn upsert-contact
diff --git a/src/status_im/contact/db.cljs b/src/status_im/contact/db.cljs
index c9fd5f3a4f..2c31c9f2f9 100644
--- a/src/status_im/contact/db.cljs
+++ b/src/status_im/contact/db.cljs
@@ -79,8 +79,8 @@
    (added? (get-in db [:contacts/contacts public-key]))))
 
 (defn blocked?
-  ([{:keys [system-tags]}]
-   (contains? system-tags :contact/blocked))
+  ([contact]
+   (:blocked contact))
   ([db public-key]
    (blocked? (get-in db [:contacts/contacts public-key]))))
 
diff --git a/status-go-version.json b/status-go-version.json
index 5b26b68627..24d44c4c9a 100644
--- a/status-go-version.json
+++ b/status-go-version.json
@@ -3,7 +3,7 @@
     "_comment": "Instead use: scripts/update-status-go.sh <rev>",
     "owner": "status-im",
     "repo": "status-go",
-    "version": "v0.89.7",
-    "commit-sha1": "4de912babad60c8ac556277ffc79026fc4cabdc4",
-    "src-sha256": "17lkgq6rciq1snnxjflxy6wqianyi0wkgjdk6rplz5yy2y91rv7v"
+    "version": "v0.89.8",
+    "commit-sha1": "e77371d7d2154128d84c9607895c13620b20b260",
+    "src-sha256": "1w8m3391xdlv29spvzlavp3f47rzvi8syk6q9nklr028l67ib0qd"
 }