Nike faces a class-action lawsuit! NFT business RTFKT suddenly halts, buyers angrily claim heavy losses.

Sports brand giant Nike has recently become the focus of a lawsuit. A group of NFT buyers has filed a class action lawsuit, accusing Nike of causing significant financial losses due to the sudden closure of its encryption asset business, and demanding over 5 million dollars in compensation.

Suddenly closing the NFT business RTFKT, the buyers angrily filed a lawsuit.

Last Friday, U.S. time, a group of consumers who purchased Nike-related NFTs and other encryption assets filed a class action lawsuit in a New York court. The representative of the plaintiffs, Jagdeep Cheema from Australia, pointed out that Nike suddenly shut down its subsidiary RTFKT in December 2024, which directly led to a rapid collapse in the demand for these NFTs, causing significant losses for the holders.

The complaint emphasizes that if they had known in advance that these NFTs actually belonged to unregistered securities, and that Nike would ultimately “pull the rug”, they absolutely would not have purchased these assets at a high price.

(RTFKT is coming to an end! After being acquired by Nike, it announced the cessation of operations three years later, and will launch a commemorative website ).

Unclear legal status, are NFT buyers taking risks on their own?

At present, the legal definition of NFT under US federal law is still not fully established, and there have been several lawsuits in recent years regarding whether NFTs constitute securities. The Nike case also touches on sensitive regulatory issues.

The plaintiff seeks unspecified damages exceeding $5 million, accusing Nike of violating consumer protection laws in New York, California, Florida, and Oregon.

Nike’s acquisition of RTFKT has ended its operations in just three years.

Nike acquired RTFKT (pronounced “artifact”), known for digital fashion and virtual collectibles, in December 2021. At that time, Nike boldly claimed that RTFKT combines culture and gaming, representing “next-gen innovation.”

However, on December 2, 2024, Nike suddenly announced the completion of RTFKT’s business closure, only emphasizing that the brand “has inspired countless creators and projects,” and stated that the related spirit of innovation will continue, but did not provide specific guarantees for NFT holders.

Nike and the plaintiff’s lawyer have not responded yet.

As of now, Nike’s headquarters has not responded to media requests for comments, and the plaintiff’s attorney, Phillip Kim, has also declined to comment on the details of the case.

Nike Faces Class Action Lawsuit! NFT Business RTFKT Suddenly Halts, Buyers Furious Over Heavy Losses First Appeared in Chain News ABMedia.