US EditionNike 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 $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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Total News Sources65
Leaning Left3Leaning Right2Center8Last UpdatedBias Distribution62% Center
Bias Distribution
- 62% of the sources are Center
62% Center
L 23%
C 62%
15%
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