Nike sued after shutting down its crypto unit RTFKT

Accused of abandoning its NFT investors after the sudden shutdown of its crypto division RTFKT, the sports giant faces a class action lawsuit in the United States.

After abruptly shutting down RTFKT, its division dedicated to NFTs and crypto assets, US sports giant Nike is facing a class action lawsuit.

The plaintiffs, led by Australian Jagdeep Cheema, are claiming over $5 million in damages, alleging violations of consumer protection laws in New York, California, Florida, and Oregon.

According to the complaint, filed in Brooklyn federal court on April 25, the sports brand sold unregistered securities in the form of NFTs before “pulling the rug out from under” buyers by shutting down RTFKT.

Had the risks been properly disclosed, the plaintiffs would never have invested in these digital tokens or would have done so at much lower prices, the lawsuit stated.

However, this unexpected shutdown drastically depreciated the value of NFTs linked to RTFKT, leaving many buyers in a state of uncertainty.

The case also raises a crucial question in the crypto realm: should NFTs be deemed securities subject to American regulation?

Nasdaq is precisely putting pressure on the SEC to enforce this regulation.

At present, neither Nike has responded to the lawsuit nor did Phillip Kim, the lawyer for the plaintiffs.

As a reminder, in December 2021, Nike acquired RFTKT, known for its innovative approach combining fashion, culture, and the gaming universe.

But on December 2, 2024, the sports equipment company quietly announced the conclusion of the RTFKT integration process, stating that the brand’s legacy would continue through other creators and projects.

This lawsuit against Nike highlights the growing difficulties major brands face when venturing into the still ambiguous and risky NFT and crypto domain.

The outcome of this case could influence the future regulation of digital assets in the United States, which we hope will be positive under Paul Atkins's leadership.