Burwick Law has warned Metaplex, the Solana-based NFT platform, that its plan to sweep unclaimed SOL into its treasury instead of returning it to NFT holders could expose it to litigation risks. Following a method to reduce on-chain storage for NFTs, Metaplex announced a deadline of April 25 for TM NFT holders to claim their SOL. Any unclaimed funds would automatically transfer to the Metaplex DAO, raising concerns among NFT owners regarding their notifications on the sweep. With over 54,000 SOL at risk, Burwick criticized the lack of transparency and highlighted the potential for legal action if the plan is enacted, arguing it undermines crypto principles. The firm suggested Metaplex pause the fee sweep and refund rent directly to NFT holders, proposing a 90/10 fund split to maintain DAO financing while protecting users. Burwick emphasized the importance of accountability and transparency in Web3, urging the DAO to act responsibly to avoid further escalations.

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