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Nike sued over shuttered sneaker NFT business

Nike faced a proposed class action lawsuit in May 2025 after shutting down its RTFKT subsidiary, which sold virtual sneaker NFTs, in December 2024.
Nike acquired RTFKT in late 2021 to enter the NFT and metaverse market during a booming period for digital collectibles.
The lawsuit alleges Nike misled investors by promoting NFTs as valuable securities tied to its brand before abruptly closing RTFKT and ending support.
Leading the plaintiffs, Australian resident Jagdeep Cheema is pursuing damages exceeding $5 million, characterizing Nike’s closure as abruptly pulling the foundation out from under investors.
The case may influence the unsettled legal status of NFTs and how courts view digital assets as securities under consumer protection laws.

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Nike faces lawsuit: clients claim that NFTs are unregistered securities

Nike is being sued by a group of consumers who purchased the brand's NFTs, specifically linked to the RTFKT project, launched in 2021. The lawsuit comes in the wake of Nike's announcement...

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Thousand Of NFTs Disappeared After Company Behind Them Switched To A Cheaper Storage Service

Thousands of CloneX RTFKT NFTs temporarily disappeared after the company hosting them downgraded its storage plan.

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Nike faces $5 million lawsuit after Cloudflare outage temporarily wipes its NFT images

The disruption was not the result of a hack or a blockchain malfunction, but rather a mundane technical issue. The images for the CloneX NFTs – avatars created by RTFKT, a digital fashion studio Nike acquired in 2021 – were hosted off-chain on Cloudflare's servers. When Cloudflare prematurely downgraded RTFKT's...Read Entire Article

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