Solana NFT platform Metaplex faces potential lawsuit over handling of unclaimed SOL

Burwick Law, a New York-based firm, has raised legal concerns about Metaplex’s plan to transfer over 54,000 unclaimed SOL, worth roughly $7.3 million, into its DAO treasury. 

In an open letter shared on X on Apr. 22, the firm warned that the protocol’s approach could lead to legal action and damage user trust in the Solana (SOL) ecosystem. The SOL at risk comes from a technical upgrade that allowed non-fungible token metadata accounts to be resized, freeing up a small amount of rent paid in SOL.

Users have until Apr. 25, 2025, to manually reclaim these funds. After that, Metaplex said the remaining tokens would be swept into the DAO’s treasury. According to Burwick, many NFT holders were not properly informed that their unclaimed funds could be relocated.

The firm argues that such a move risks violating consumer protection laws and undermines core principles of transparency in crypto. “Rent was paid so NFTs could live on-chain, not to bankroll a future windfall,” the letter states.

The total value of unclaimed SOL is estimated at over $7 million at current prices. Burwick says this kind of action could be seen as unjust enrichment or unauthorized fee collection, similar to cases where banks were forced to return overdraft charges due to lack of clear disclosure.

Instead of going ahead with a full sweep, Burwick recommends halting the process and issuing refunds directly to current NFT holders through a program upgrade. The DAO could still retain a small portion, around 10%, to help cover network maintenance costs. 

The letter has not yet received a public response from Metaplex. The DAO had previously stated that the reclaimed SOL might be used to finance airdrops, community grants, or other projects that have been approved by governance. 

Burwick Law is known for representing crypto investors in cases involving token mismanagement and transparency failures. It recently filed a class action lawsuit against the team behind the LIBRA token, alleging deceptive practices and insider trading during its launch.

The firm has urged Metaplex and Solana developers to act quickly before the sweep deadline to avoid extended legal battles and protect user trust.