Nike is facing a new legal battle after a group of investors filed a class action lawsuit, claiming that the company’s abrupt shutdown of its NFT project, RTFKT, caused significant financial harm.
The lawsuit, filed in the U.S. District Court for the Eastern District of New York, accuses Nike of misleading investors and failing to properly disclose risks. Investors allege they were left holding virtually worthless RTFKT NFTs and argue that, had they been aware of the true risks, they would not have purchased them. The group is seeking over $5 million in damages.
How Nike Got Here
Nike acquired RTFKT Studios in late 2021, signaling a bold move into digital fashion and blockchain innovation. The RTFKT brand quickly became a major player in the NFT space, launching successful projects like the CloneX avatars and Cryptokicks sneakers.
At its peak, RTFKT generated over $168 million in NFT sales, bolstered by Nike’s marketing campaigns and the broader enthusiasm for digital collectibles.
However, as the NFT market cooled dramatically over the next two years, Nike announced in December 2024 that it would wind down RTFKT operations. The company cited a shift in its innovation strategy but offered little clarity about the future of existing NFTs, leaving many holders uncertain about the value of their assets.
What the Lawsuit Claims
The lawsuit alleges several key failures by Nike. Investors argue that the company failed to disclose important risks, particularly regarding the regulatory uncertainty surrounding NFTs.
The plaintiffs also claim the NFTs were effectively sold as unregistered securities. Furthermore, they allege Nike’s marketing gave the impression that RTFKT would remain a long-term project, creating expectations that were ultimately broken when the brand was shut down. As of now, Nike has not publicly responded to the lawsuit.
Bitunix Analyst Note
The Nike lawsuit is another clear reminder that Web3 and NFTs remain highly volatile, evolving sectors. Big brands entering crypto space are learning that users expect real engagement and long-term support — not just marketing and hype.
For investors, it is a strong signal to remain cautious. Always evaluate NFT projects carefully, even when large, established companies are involved. The risk of sudden strategy changes remains very real in the digital asset world.
At Bitunix, we continue to encourage all users to ask tough questions, do their research, and prioritize protecting their capital — either trading tokens, investing in NFTs, or exploring new digital frontiers.
