Nike, the world’s largest sportswear company, faces a $5 million proposed class-action lawsuit in the Eastern District of New York. The suit accuses Nike of abandoning investors in its RTFKT sneaker-themed NFT project and alleges violations of U.S. securities and consumer protection laws.
The plaintiffs claim Nike used its global brand to promote digital collectibles tied to RTFKT, a digital fashion and technology subsidiary it acquired in 2021. According to the lawsuit, Nike “hyped, promoted, and propped up” these NFTs, encouraging buyers with promises of rewards and exclusive access.
Investors say they were blindsided when Nike abruptly announced in December 2024 that it would wind down RTFKT’s operations. This move, shared via social media, caused the value of Nike NFTs to plummet on secondary markets, with prices yet to recover.
The lawsuit alleges that Nike’s NFTs are unregistered securities. The plaintiffs claim they would not have purchased them if they knew the registration status and Nike’s plan to withdraw support. The complaint accuses Nike of deceptive practices, stating the company created a rewards ecosystem to boost NFT demand before executing a “soft rug pull.” Plaintiffs seek damages for lost NFT values and claim “unjust enrichment,” stating that Nike profited from sales while retail investors incurred losses.
OpenSea has formally requested the U.S. Securities and Exchange Commission (SEC) to exempt NFT platforms from securities regulations. In a letter to SEC Commissioner Hester Peirce, OpenSea’s legal team argued that they do not meet the criteria of a securities exchange as they do not execute trades or act as intermediaries for identical assets.
Last week, RTFKT’s flagship Clone X NFT collection, co-created with artist Takashi Murakami, briefly disappeared from display due to a Cloudflare hosting issue. Off-chain images were replaced by a black screen, further unsettling investors. Nike has not yet commented on the lawsuit.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
