What would you do if you were told your shares are worthless?
Even though their shares are deemed worthless, that is not going to stop them from selling. If it is them selling, or one of the other insiders, yes, they are doing it illegally. Remember, Mr. Carlson has a large position too and he did a private placement. His shares are free trading shares if I am correct. (check the IBOX)
I am sure some of the insiders had free trading shares too. Most likely not all their shares were restricted shares. As of today, the only shares that could actually be deemed worthless or cancelled or the restricted shares.
The other shares in the OS/Float are free to trade.
It could be one of many shareholders wanting out not knowing what is about to unfold.
Too many scenarios still to be played out.
Until we see actual Docs that the shell has officially changed hands it means there is 50 million shares in the OS and we don't know who is all holding those shares.