Nike Faces Class-Action Lawsuit Over RTFKT NFT Shutdown
A group of non-fungible token (NFT) owners has sued Nike,alleging the company orchestrated a “rug pull” with its RTFKT platform. The lawsuit, filed in the U.S. District Court for the Eastern District of New York, claims Nike promoted sneaker-themed NFTs, profited from sales, and then abruptly shut down RTFKT in January 2025.
Plaintiffs,led by RTFKT holder Jagdeep Cheema,seek $5 million in damages.They accuse Nike of violating consumer protection laws and selling unregistered securities. The lawsuit argues that Nike’s NFTs qualify as securities under the Howey Test, as buyers invested expecting profits linked to Nike’s efforts.
Nike acquired RTFKT in December 2021, during the NFT boom.The studio was praised for merging fashion,gaming,and blockchain technology. Though, as the NFT market cooled, interest in RTFKT’s collections waned.
In December 2024,Nike announced RTFKT’s wind-down,citing a desire to preserve its legacy. The plaintiffs claim this move destroyed NFT value and eliminated promised features like quests and rewards.
After the shutdown, the secondary market collapsed, and NFT prices plummeted. The lawsuit accuses Nike of misleading NFT holders with promises of an active ecosystem and peer-to-peer trading.
