Burwick Law warns Metaplex over unclaimed SOL transfer to DAO treasury, claiming potential legal issues and loss of user trust - IcoHolder.

Burwick Law, a New York-based firm, has issued a legal warning regarding Metaplex’s plan to transfer over 54,000 unclaimed SOL, valued at approximately $7.3 million, into its DAO treasury. In an open letter shared on X on April 22, the firm expressed concerns that the move could spark legal action and erode user trust in the Solana ecosystem.

The unclaimed SOL originates from a technical upgrade that allowed non-fungible token (NFT) metadata accounts to be resized, freeing up rent paid in SOL by users. Metaplex has announced that users have until April 25, 2025, to manually reclaim these funds, after which the remaining tokens will be swept into the DAO’s treasury. Burwick Law argues that many NFT holders were not adequately informed that their unclaimed funds could be reallocated.

The firm contends that this approach could violate consumer protection laws, suggesting that such actions undermine the principles of transparency in the crypto space. “Rent was paid so NFTs could live on-chain, not to bankroll a future windfall,” the letter states, urging the protocol to reconsider its course of action.

The total value of the unclaimed SOL exceeds $7 million at current prices. Burwick Law warns that this move might be viewed as unjust enrichment or unauthorized fee collection, drawing parallels to past legal cases where financial institutions were required to return fees due to insufficient disclosure.

Instead of proceeding with a full sweep of the funds, Burwick Law recommends halting the process and directly refunding current NFT holders through an upgraded program. The DAO could retain a small portion, around 10%, to cover network maintenance costs.

Metaplex has not yet publicly responded to the letter, but the DAO previously stated that the reclaimed SOL could be used for airdrops, community grants, or other governance-approved projects. Burwick Law, known for representing crypto investors in cases of mismanagement and transparency failures, has urged Metaplex and Solana developers to act swiftly to avoid prolonged legal disputes and protect user confidence.