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Remote Server returned '550 5.7.125 RESOLVER.GRP.Blocked.NeedsSenderRestrictions

Christian Hans
Last Modified: 2017-04-18
We are in a Hybrid Exchange environment (Exchange 2013+Exchange Online)...

I have a MailUniversalDistributionGroup on my 2013 server that contains 12000 users, we are getting the following

NDR states the following:

Remote Server returned '550 5.7.125 RESOLVER.GRP.Blocked.NeedsSenderRestrictions; DL expansion needs sender restrictions or message approval configured'

Delivery has failed to these recipients or groups:
AllEmployees@domain.com (AllEmployees@domain.com)
Your message couldn't be delivered because the group you sent to isn't ready to accept messages. Before you can send mail to the group, it needs to have sender restrictions or message approval set.
Ask the owner of the group to set message approval (also called moderation) or sender restrictions for the group, then try resending your message.
For more information (including how to find the owner of a group), see DSN 5.7.125 Errors in Exchange Online and Office 365.

Settings on the group:
BypassNestedModerationEnabled          : False
AcceptMessagesOnlyFrom                 : {}
AcceptMessagesOnlyFromDLMembers        : {}
AcceptMessagesOnlyFromSendersOrMembers : {}
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