Nike Hit with $5 Million Lawsuit Over RTFKT NFT Platform Closure

Updated

April 29, 2025

Gambar Nike Hit with $5 Million Lawsuit Over RTFKT NFT Platform Closure

Jakarta, Pintu News – Nike, the leading American sportswear brand, is facing a high-profile lawsuit. The company is accused of a “rug pull” or sudden withdrawal from the NFT RTFKT platform that it manages, resulting in significant financial losses to investors.

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Lawsuit Case Against Nike

A class action lawsuit has been filed by a group of NFT RTFKT investors in Brooklyn federal court, accusing Nike of a “soft rug pull”.

Nike is accused of using its reputation to promote NFTs associated with digital fashion platforms and RTFKT technology.

After making a profit, Nike then shut down the RTFKT platform, resulting in a decline in the value of the digital collection and huge losses for investors.

Is NFT RTFKT a Security?

The lawsuit also highlights that RTFKT NFTs could be considered “unregistered securities”. Nike is accused of violating U.S. law by selling unregistered securities in the form of NFTs, promoting them heavily, and then withdrawing after making a profit.

The plaintiffs sought $5 million in damages, claiming that Nike had violated consumer protection laws as well as state unfair trade and competition laws.

Debate on Classification of NFTs as Securities

Although US courts have yet to classify NFTs as securities, the debate continues to rage on in the industry. On April 9, 2025, OpenSea requested that the US Securities and Exchange Commission (SEC) exclude NFTs from federal securities laws. They argued that NFTs do not meet the legal definition of a security.

However, in Nike’s lawsuit, the class stated that the court does not need to determine the legal status of NFTs to resolve this complaint. Recently, the SEC also shared updated guidance on the classification of digital assets as securities.

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