Here's a safer procedure that doesn't involve running shady wallets:
Create a throwaway Electrum wallet, and send $5 worth of BTC to it
Do the scary pay-to-many transaction for that coin only with a destination address of your real wallet
Now you have a SHA256-only coin in your real wallet!
Create an annonymous account on the shady exchange, enable 2FA (needed later for withdrawal), generate a BTC2B deposit address, note it
In the real Electrum wallet, create a transaction that sends all your coins (EXCLUDING the SHA256-only one!) to the deposit address
Do NOT sign that transaction yet, just export it into a file
In the real Electrum wallet, create a transaction that consolidates all your coins (INCLUDING the SHA256-only one!) into one (or multiple) change addresses
Triple check everything is going to your own address, verify the color of the output (must be green/yellow)
Sign and broadcast, wait for 6+ confirmations
Now load the unsigned transaction from step 6, sign it, export it to clipboard
Open mempool.guide in Tor Browser, click Broadcast Transaction, paste and broadcast
You should see the deposit in the exchange, after about 6 confirmations, it will be tradable
Sell for USDC (more liquidity) or BTC, withdraw (USDC through swap) to own wallet
Here's a safer procedure that doesn't involve running shady wallets: