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Lawyers threaten Metaplex over $6.5M unclaimed SOL “sweep” plan

Law firm Burwick Law has criticized Metaplex's plan to transfer unclaimed SOL tokens to its treasury instead of returning them to NFT investors.

  • Over 54,000 SOL tokens (worth approximately $6.5 million) remain unclaimed from Metaplex’s NFT resizing program.
  • The law firm suggests Metaplex should pause its plan and instead return 90% of funds to NFT holders while keeping 10% as a maintenance fee.

Burwick Law has publicly challenged Metaplex’s intention to redirect unclaimed Solana (SOL) tokens into its treasury, warning of potential legal consequences. The crypto law firm issued an open letter on April 22, expressing concern over the NFT platform’s plan to sweep unreturned funds from its NFT resizing program instead of returning them to original investors.

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Last year, Metaplex discovered a method to reduce onchain storage requirements for certain NFTs on the Solana network. This optimization allowed NFT holders to claim small amounts of SOL by resizing their NFTs, with a deadline set for April 25, 2024. According to Metaplex’s website, only 7,043 SOL have been claimed so far, leaving over 54,000 SOL tokens (approximately $6.5 million at current prices) unclaimed.

“Many minters never received clear notice that these lamports could be swept, let alone diverted to a treasury they do not control,” Burwick Law stated in its open letter to Metaplex and the Solana community. The firm added that “‘Code is law’ only works when the rules are clear and immutable. If a protocol can rewrite yesterday’s deal tomorrow, the promise of decentralised permanence rings hollow.”

The law firm warned that such actions could potentially violate consumer protection laws and lead to litigation where victims may be entitled to restitution if courts find the token sweep constitutes unjust enrichment.

Alternate Solution Proposed

Burwick Law recommended that Metaplex pause its current plan and instead implement a 90/10 split of the unclaimed funds – returning 90% directly to current NFT holders while retaining 10% as a “modest” network-maintenance bounty.

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“A 90/10 split protects users, preserves DAO funding, and proves that the Solana ecosystem can self-regulate—without a courtroom,” the firm suggested, noting that other DeFi protocols have resolved similar issues using this approach.

Metaplex previously indicated that unclaimed SOL might be used for DAO votes on airdrops, ecosystem builder grants, or other initiatives. As of reporting, Metaplex has not responded to Burwick’s public statement.

Time for Resolution

The law firm emphasized that there is still sufficient time for Metaplex to adjust its strategy and avoid potential legal action where funds could be frozen.

“The ball is in the DAO’s court. Let’s show the world that Web3 corrects its own course and lives up to its founding principles of transparency, immutability, and fair dealing,” Burwick Law concluded in its statement.

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