Metaplex Faces Potential Lawsuit from Burwick Law Over Its Controversial Plan to Redirect Unclaimed SOL Tokens

The dispute centers around millions of dollars worth of tokens that could be swept into Metaplex's control by the end of April.

Solana-based NFT platform Metaplex is facing potential legal action from crypto law firm Burwick Law over its controversial plan to redirect unclaimed SOL tokens to its treasury rather than returning them to their original owners. The April 25 deadline for claiming the tokens is fast approaching.

The ongoing saga began with Metaplex’s discovery of a method to reduce on-chain storage requirements for certain NFTs, which would permit the return of small amounts of SOL that were initially deposited by Solana NFT owners. This initiative, known as resize optimization, was announced by Metaplex in October, enabling holders of Token Metadata (TM) NFTs to reclaim the excess SOL.

However, the platform’s move to sweep unclaimed tokens to the Metaplex DAO treasury has sparked criticism among some users. According to Metaplex’s own data, only 7,043 SOL has been claimed out of a total of 54,388. This leaves over 54,000 SOL tokens, valued at approximately $7.3 million at current market prices, potentially subject to the sweep.

In an open letter dated April 22, Burwick Law stated that many minters were not adequately informed about the possibility of their funds being swept and diverted to a treasury outside their control. The firm highlighted that several NFT collectors have expressed serious concerns about the plan, which they believe undermines trust in the ecosystem.

“The principle of ‘code is law’ only holds when rules are clear and immutable,” Burwick stated in the letter.

“If a protocol can alter agreements retrospectively, the promise of decentralized permanence becomes meaningless. We believe that a court would likely find such actions unconscionable and unjust.”

The law firm further suggested that if a court finds the sweep constitutes unjust enrichment or violates consumer protection laws, the affected users could be entitled to restitution.

Burwick Law’s Legal Threat to Intervene

The crypto law firm also stated that it is prepared to intervene in any legal action arising from the unclaimed SOL tokens or the announced sweep to the Metaplex DAO treasury.

The firm’s involvement in the matter comes as a result of observing the unfolding events and listening to the concerns expressed by members of the Solana NFT community.

Burwick’s letter to Metaplex suggests that the protocol can put its existing strategy on hold and propose a different use for the unclaimed rent. The firm proposes that Metaplex can refund the rent to existing NFT holders and, at the same time, keep a “modest network-maintenance bounty” of 10%. This way, the protocol can continue to fund the DAO and demonstrate that the Solana ecosystem can effectively self-regulate without legal intervention.

“We urge you to reconsider your current plans and propose a solution that aligns with the principles of fairness,operability, and the long-term health of the Solana NFT ecosystem,” the letter concludes.

The post Crypto Law Firm Threatens Legal Action Against Metaplex Over Unclaimed SOL Tokens Sweep Plan appeared first on Coin Edition.

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