In a shocking twist for the NFT and sneaker worlds, Nike is facing a $5 million class action lawsuit after the abrupt shutdown of its NFT platform, RTFKT.
Investors and collectors are furious, accusing the sportswear giant of a “rug pull” that left their Nike-themed NFTs virtually worthless. 😱
🔥 What Happened?
Nike’s digital division, RTFKT Studios, once hailed as a futuristic move into the NFT and metaverse space, announced in December 2024 that it would wind down operations by January 2025.
This decision blindsided holders of Nike NFTs, who now claim they were misled and financially harmed.
The lawsuit alleges that Nike:
- Used its massive brand power to hype the RTFKT NFTs.
- Failed to disclose plans to shut down the platform.
- Sold NFTs that may be considered unregistered securities under U.S. law.
- Left buyers holding worthless assets after the shutdown. 📉
⚖️ The Legal Claims
The plaintiffs are seeking over $5 million in damages, citing:
- Consumer Protection Law Violations
- Breach of Contract
- Deceptive Business Practices
They argue that if they had known RTFKT would be closed, they never would have purchased the NFTs in the first place.
In short, they feel Nike lured them in with promises of long-term value — only to pull the plug once the initial hype had died down.
🛑 Is This a “Rug Pull”?
The term “rug pull” is typically used when a crypto or NFT project suddenly disappears or abandons users, leaving them with worthless tokens.
While Nike’s situation is more corporate and structured than a typical crypto scam, the core accusation is the same:
- Nike allegedly pumped up demand through marketing,
- then exited the project, causing massive financial losses for investors.
The shutdown of RTFKT has led many to question Nike’s commitment to Web3 initiatives moving forward.
📈 What It Means for NFT Markets
This lawsuit could have broader implications for:
- How NFTs are marketed (especially by major brands).
- Whether NFTs could be classified as securities under U.S. law.
- Consumer protection standards in the Web3 space.
It also sends a loud warning to other major corporations:
Jumping into NFTs without a long-term strategy — or clear communication — could backfire legally and financially.
🧠 Final Thoughts
Nike’s entrance into the NFT world was once seen as a bold move toward embracing the future of digital ownership.
Now, it could become a cautionary tale about the risks of overhyping new technology without fully committing to it.
As this lawsuit unfolds, it will be a major test case for how courts view NFTs, consumer rights, and brand accountability in the Web3 era.
Looks like Nike’s NFT game just kicked a serious penalty — and this time, it’s going straight to court. 🏟⚖️
