Investors Sue Nike for $5M Over Alleged RTFKT NFT Project Abandonment

Written By Peter Smith

​Nike is currently facing a proposed class action lawsuit filed in the U.S. District Court for the Eastern District of New York by purchasers of Nike-themed non-fungible tokens (NFTs) and other cryptocurrency assets. The plaintiffs, led by Australian resident Jagdeep Cheema, claim they suffered significant financial losses following the abrupt December 2024 shutdown of RTFKT, Nike's digital asset unit. They allege that Nike misrepresented the nature of the NFTs, which were purportedly unregistered securities, and that the closure eliminated demand for the assets, causing their value to plummet.

Nike acquired RTFKT in December 2021, aiming to innovate in digital collectibles. Despite announcing RTFKT's winddown, Nike affirmed that its legacy would continue through inspired creators and projects.

The legal classification of NFTs remains uncertain and has become a contentious issue in courts. Nike has yet to respond to the legal complaint. ​

#Web3.0 #NFT #Blockchain #Crypto #Cryptocurrency #AI #Metaverse #OpenSea #AR

Peter Smith
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