Nike faces a $5 million lawsuit for shutting down RTFKT, which allegedly resulted in NFT losses. Users of this platform claim they lost a significant number of NFTs when the shutdown occurred so quickly.
The users claim that Nike initially expressed interest in the RTFKT project. Nike then abandoned it, causing their tokens to lose all value and resulting in significant NFT losses.
What Happened?
In 2021, Nike acquired RTFKT Studios, a company creating NFTs resembling sneakers and other digital assets. People could trade these NFTs and use them to finish quests. Nike promoted them as valuable digital assets. Some even sold for up to 3.5 ETH (about $8,000).
RTFKT, together with Nike CryptoKicks, introduce the future of Sneakers, powered by Skin Vial tech
Welcome to 2052 :
pic.twitter.com/7449L79Bf4
— RTFKT (@RTFKT) April 22, 2022
In January 2025, people were caught by surprise when Nike suddenly shut down RTFKT. Buyers had believed Nike’s promises of long-term benefits and rewards, but instead, they ended up with digital assets that became worthless.
Why the Lawsuit?
On April 25, people affected by this situation decided to take legal action by filing a lawsuit in the U.S. District Court for the Eastern District of New York. They claim Nike utilized its brand in promoting unregistered securities. They think Nike sold the NFTs with promises linked to Nike’s success and brand. This means buyers believed the NFTs would become more valuable as Nike continued advancing the project.
With RTFKT shut down, investors claim they have experienced significant financial losses. The sharp decline in value and the loss of promised quests and rewards have left them in a challenging position. They’re taking it to court, asking for $5 million to compensate for their losses. Their case? They claim Nike violated state and federal consumer laws.
The RTFKT saga is not over, as Nike is being sued for $5M over a soft rug pull while investors claim they have been sold unregistered NFT securities.
I guess WAGMI does not apply to RTFKT nor Nike. . .
Filing lawsuit here: https://t.co/HLCUDc7mEE pic.twitter.com/qrybxwjAZS
— Adidust.eth
(@dustdust213) April 28, 2025
Interestingly, the case doesn’t need the court to decide whether NFTs are legally considered securities—a topic the SEC is still grappling with. Instead, the focus is on how Nike marketed and managed the project.
Conclusion
For investors, this is another painful example of NFT losses that come when big brands shift direction. The lawsuit against Nike highlights the risk of entering the NFT market without securing explicit promises or protections. As this legal case develops, it may establish new guidelines for holding companies accountable in Web3.
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