Nike Faces a $5 Million Lawsuit Over Its Collapsed NFT Project RTFKT

Nike is under fire after a group of investors filed a class action lawsuit, accusing the sportswear giant of causing massive financial losses by shutting down RTFKT, its Web3-focused subsidiary acquired in 2021.

The investors claim Nike’s actions led to a sharp collapse in the value of Nike-branded NFTs, wiping out millions in investments.

Nike Accused of Promoting Unregistered Securities Through NFTs

According to court documents, Nike allegedly “rugpulled” the community by closing RTFKT and cutting off demand for the associated digital assets.

The plaintiffs argue that Nike used its brand power and marketing expertise to promote what they describe as unregistered securities before suddenly abandoning the project.

This NFT project made $168M

Nike bought it

Elon Musk and Kanye West wore their shoes

Now the collection is gone
And so are the founders

The rise, fall, rug of RTFKT and Clone-X