EddieJayonCrypto
28 Apr 25
Nike is facing a lawsuit after shutting down its NFT business, which began with its 2021 purchase of RTFKT Studios. Investors, led by Australian Jagdeep Cheema, claim they suffered losses as demand for Nike-themed NFTs dropped following the closure announcement. They allege the NFTs were unregistere...
Nike is currently facing a $5 million lawsuit from investors who claim that the closure of its RTFKT NFT project caused significant financial losses. The investors allege that the NFTs were unregistered securities and accuse Nike of conducting a "rug pull," which involves abruptly abandoning a project and leaving investors with worthless assets.
The controversy began when Nike, having purchased RTFKT Studios in 2021 to expand into the metaverse with digital collectibles, shut down the NFT project in December. This move reportedly led to a sharp drop in demand for Nike-themed NFTs, triggering the legal action. The lawsuit is led by Australian resident Jagdeep Cheema and targets alleged violations of consumer laws across New York, California, Florida, and Oregon.
While the legal status of NFTs continues to be a gray area with ongoing debates about whether they qualify as securities, this case highlights the complexities investors face in the evolving crypto and digital asset landscape. Nike has yet to comment publicly on the lawsuit.