Nike Inc. is facing a proposed class-action lawsuit filed in New York after purchasers of its Nike-themed NFTs and related crypto assets alleged they suffered heavy financial losses following the abrupt shutdown of its RTFKT unit. The lawsuit, led by Australian resident Jagdeep Cheema, accuses Nike of misleading consumers about the stability and value of its digital offerings.
The plaintiffs argue that Nike’s NFTs were unregistered securities and claim they would not have made purchases had they known about the regulatory risks and RTFKT’s planned closure. Nike acquired RTFKT in 2021, promoting it as a pioneering brand at the intersection of fashion, gaming, and culture, but later announced its shutdown in December 2024.
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The lawsuit seeks over $5 million in damages for alleged consumer protection violations across multiple states, asserting that Nike failed to properly register the tokens under US securities laws. This case adds to the growing debate over whether NFTs should be regulated as securities in the United States.
Nike has yet to issue a public response regarding the allegations.
