Nike Faces Class Action Lawsuit over RTFKT Shutdown

Nike sued in New York over RTFKT shutdown, affecting NFT holders significantly.

Key Takeaways:

The lawsuit involves RTFKT NFT holders against Nike for shutdown-related losses.
RTFKT’s assets lost over 90% in value post-shutdown.
No comments from Nike or major influencers have been published so far.

Nike is facing a class action lawsuit filed on April 25, 2025, by RTFKT NFT holders in Brooklyn, New York, claiming financial losses from RTFKT’s shutdown.

The case could impact U.S. NFT regulations, with affected assets losing significant value since the abrupt shutdown.

Nike acquired RTFKT in December 2021 to expand into digital assets and the metaverse.

The class action suit is led by RTFKT NFT holders claiming financial losses post-shutdown. RTFKT shut down in January 2025 under Nike’s management.

Plaintiffs allege Nike profited from initial NFT sales but left asset values to collapse, demanding over $5 million in damages. Consumer protections under New York, California, Florida, and Oregon laws are cited in the claims.

Clone X and Animus NFTs experienced a sharp decline of 93% after the shutdown, with owners noting image and metadata disappearances. Ethereal price fluctuations remained unrelated to the event.

Historical cases show similar outcomes with large value declines post-NFT project changes. The lawsuit might shape future regulatory views on NFTs as securities in the U.S. Jagdeep Cheema notes:

As this type of digital asset is properly classified as a security under relevant law, the issuers of this type of token are required to register them and file relevant statements with the authorities and comply with relevant securities laws. The Nike NFTs were never registered as such.

If successful, this lawsuit could redefine securities laws concerning NFTs in the U.S., impacting how companies handle digital asset ventures. Regulatory responses remain speculative, with no federal comments.