TLDR:
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NFT buyers sue Nike for $5 million after RTFKT platform shutdown.
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Plaintiffs allege Nike sold unregistered securities.
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RTFKT NFTs allegedly lost significant value after closure.
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Case highlights growing legal risks in corporate NFT ventures.
Investors File Lawsuit Against Nike
A group of investors filed a class action lawsuit against Nike last Friday, seeking over $5 million in damages. The complaint accuses Nike of selling unregistered securities through its RTFKT NFT platform and conducting a "rug pull" when it shut down the business earlier this year.
Collapse of RTFKT’s NFT Platform
Nike acquired RTFKT in 2021 and became a major player in the NFT market. However, the company announced it would shut down RTFKT by January 2025. Buyers argue that the shutdown drastically devalued their NFTs, which were designed for peer-to-peer trading.
Wider Implications for Corporate NFTs
The lawsuit claims Nike’s actions violate consumer protection laws across multiple states. As corporate NFT projects face mounting scrutiny, this case could set important legal precedents regarding NFT regulation and consumer rights in crypto-related products.
