Nike Accused of Misleading NFT Investors in New $5 Million Lawsuit
Nike is facing legal trouble over its move to shut down its NFT venture, with investors accusing the sportswear giant of leaving them in the lurch.
The lawsuit, filed on Friday and led by Australian investor Jagdeep Cheema, claims that buyers of Nike-themed NFTs suffered major financial losses after Nike’s digital collectibles arm, RTFKT Studios, was shut down.
Nike had acquired RTFKT in 2021 as part of its push into the metaverse but officially wound down the project late last year.
According to the complaint, investors argue they were misled, saying they would not have purchased the NFTs if they had known the tokens might be considered unregistered securities.
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Although U.S. courts have not yet fully determined how NFTs should be classified, the uncertainty around their legal status is fueling a wave of similar lawsuits.
Adding to the controversy, Nike is accused of carrying out a “rug pull” — abruptly abandoning the project and leaving NFT holders with assets that quickly plummeted in value.
The plaintiffs are seeking over $5 million in damages, citing alleged violations of consumer protection laws in New York, California, Florida, and Oregon.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
