Nike Sued Over RTFKT NFT Collapse, Industry Pullback

Nike is facing a proposed $5 million class-action lawsuit in federal court after shutting down its NFT subsidiary, RTFKT, in January 2025. Plaintiffs allege Nike orchestrated a 'rug pull' by heavily marketing RTFKT’s sneaker-themed NFTs, which saw their values drop from around $8,000 to as little as $16 following the project's abrupt closure. The lawsuit claims Nike failed to disclose regulatory risks and the potential for sudden project abandonment, violating consumer protection and competition laws in multiple states. The case highlights ongoing legal uncertainty over whether NFTs constitute securities under U.S. law. This action comes as major brands like Starbucks and DraftKings have also retreated from the NFT space amid declining trading volumes and investor confidence. Nike has not yet commented on the suit.