Buyers Claim Nike's RTFKT Shutdown Caused NFT Losses

A group of buyers, led by Australian resident Jagdee Cheema, filed a class action lawsuit in New York, claiming that when Nike suddenly shut down its RTFKT unit in December 2024, the value and demand for their NFTs collapsed

A group of buyers is planning a class action lawsuit against Nike for abruptly shutting down its digital asset division, causing the value of NFTs to plummet, rendering them "nearly worthless."

Buyers Claim Nike’s RTFKT Shutdown Caused NFT Losses

The lawsuit, filed on Friday in New York by Jagdee Cheema, an Australian resident, and others, claims that when Nike closed its RTFKT unit in December 2024, the value and demand for their NFTs collapsed, rendering the digital assets "nearly worthless." The unit had created Nike-themed NFTs and crypto assets.

The legal status of NFTs is still unclear, with ongoing debates about whether they are considered securities. The lawsuit seeks over $5 million in damages for violations of consumer protection laws in New York, California, Florida, and Oregon.

In December 2021, Nike acquired RTFKT, pronounced “artifact,” with the vision of merging cutting-edge technology and cultural trends to create the next generation of collectibles.

This lawsuit follows a broader legal battle over the collapse in value of Nike NFTs, with claims seeking more than $5 million in damages.

In March 2025, Rosen Law Firm, a global investor rights law firm, announced an investigation into potential claims on behalf of buyers of the Nike-themed NFTs issued by RTFKT. The firm is preparing a class action lawsuit to help investors recover losses, with payment required only if they win. This investigation is part of the broader legal skirmish over the collapse in value of Nike NFTs, with claims aiming to reach over $5 million in damages.

The lawsuit claims that RTFKT's actions and statements induced buyers to purchase the NFTs at inflated prices. It further alleges that RTFKT misrepresented the value, collectibility, scarcity, and limited-edition nature of the NFTs to deceive buyers into making rash and ill-advised economic decisions.

After announcing the closure of its RTFKT unit in December 2024, Nike stated that it would continue to leverage Web3 technologies and expressed interest in merging cutting-edge technology and cultural trends to create the next generation of collectibles. Despite shutting down the unit, Nike highlighted that RTFKT's impact would endure through the countless creators and projects it had inspired.