Investors Sue Nike Following Sudden Shutdown of RTFKT NFT Platform

Nike is facing a new legal battle after a group of NFT and crypto asset buyers accused the company of leaving them with major financial losses.

The lawsuit, filed Friday in federal court in Brooklyn, claims Nike’s unexpected shutdown of its RTFKT division in December wiped out the market for its digital collectibles.

The lead plaintiff, Jagdeep Cheema from Australia, and others argue that they would not have invested in the Nike-themed NFTs had they known the company would abruptly abandon the project. They also allege that the NFTs amounted to unregistered securities, and that Nike’s actions amounted to pulling the rug out from under investors.

Nike, headquartered in Oregon, has yet to publicly comment on the accusations. Lawyers representing the plaintiffs have also declined to offer further details.

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The legal status of NFTs remains a gray area in U.S. law, with growing debate around whether they should be regulated as securities. This latest lawsuit is seeking more than $5 million in damages, citing alleged violations of consumer protection laws across several states including New York, California, Florida, and Oregon.

Nike acquired RTFKT, pronounced “artifact,” in late 2021, positioning the brand as a pioneer blending fashion, gaming, and digital collectibles. However, on December 2, 2024, the company announced the completion of RTFKT’s wind-down, stating that while the brand itself would be retired, its creative spirit would continue to influence future projects and communities.

Alexander Stefanov