Apr 28, 2025 11:25:00

Nike sued by user who bought unique NFTs

Nike, one of the world's largest sporting goods manufacturers,

acquired RTFKT , a digital sneaker manufacturer that uses NFTs , in 2021 and began developing it independently as an NFT business. However, Nike announced that it would discontinue RTFKT in December 2024. It has been revealed that Nike is being sued by a purchaser of this RTFKT.

Nike sued over closure of crypto business | Reuters
https://www.reuters.com/sustainability/boards-policy-regulation/nike-sued-over-closure-crypto-business-2025-04-25/

Nike is facing a lawsuit from people who bought its NFTs | The Verge
https://www.theverge.com/news/656960/nike-lawsuit-rtfkt-nft-virtual-shoes

Nike discontinued its digital sneaker business, RTFKT, in 2024. It has become clear that some buyers who were dissatisfied with the discontinuation of RTFKT have sued Nike.

In a proposed class action lawsuit filed in federal court in Brooklyn, New York, a group of buyers led by Australia-based Jagdeep Cheema argued that the abrupt closure of Nike's RTFKT in December 2024 'dried up demand for NFTs.'

In the lawsuit, the plaintiffs are seeking more than $5 million in damages for violations of consumer protection laws in New York, California, Florida and Oregon.

The plaintiffs describe the tokens as 'unregistered securities' and argue that if they had known Nike was going to terminate RTFKT, they would not have purchased the high-value NFTs.

Bloomberg has reached out to Nike for comment, but has not received a response at the time of writing. Philip Kim, an attorney representing the plaintiffs, also declined to comment to Bloomberg.

The legal status of NFTs is unclear, and there is much litigation ongoing regarding whether NFTs are securities under U.S. law.