Nike NFT RTFKT: Closed Split Results in Million-Dollar Class Action
- Nike Sued After Shutting Down NFT Division RTFKT
- Investors allege sale of unregistered securities in NFTs
- Debate over NFTs as securities impacts cryptocurrencies
Nike, one of the world's biggest sports brands, is being sued in New York after the sudden shutdown of its NFT division, RTFKT. The class action lawsuit, led by Australian investor Jagdeep Cheema, seeks a indemnification of US$5 million. The group of buyers alleges that the company committed “rug pull” and traded unregistered titles, leaving thousands of users with devalued digital collections.
According to the lawsuit, Nike allegedly leveraged its strong reputation to boost the sale of NFTs without providing the necessary legal protections. With the closure of RTFKT in early 2025, the functionality of the digital assets was also compromised, as several NFTs stopped displaying their images due to technical issues related to Cloudflare, increasing investor uncertainty.
The legal dispute has also reignited the debate over whether NFTs should be classified as securities. U.S. regulators and courts still disagree on this definition, which could bring major changes to the cryptocurrency industry in the coming years. Clearer regulation could force companies to adopt more transparent practices without limiting technological development.
Nike acquired RTFKT in 2021, a move seen as a step forward for the mass-market adoption of blockchain technology. The partnership was initially met with enthusiasm by the cryptocurrency community, but the unexpected closure of the division has sparked frustration among collectors who were banking on the potential for appreciation of the brand's digital assets.
Even with attempts to restore some of the digital content, many users began to question the centralized management of NFT collections, highlighting the need for more decentralized and lasting solutions for the digital asset market.
Despite the episode, the cryptocurrency sector continues to evolve, seeking to reinforce the protection of digital property and user autonomy, through auditable smart contracts and decentralized storage.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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