Nike Caught in NFT Controversy With $5M Lawsuit
Nike faces a $5 million class action lawsuit after shutting down its NFT-focused subsidiary, RTFKT, in December 2024.
Investors, led by Australian Jagdeep Cheema, claim Nike misled them into buying unregistered securities—Nike-themed NFTs—whose value plummeted after the closure. Filed in New York, the suit cites consumer protection violations across four states. Nike acquired RTFKT in 2021 to lead in digital fashion and gaming culture but later ended the project, citing creative shifts. The case highlights growing legal questions around NFTs and corporate responsibility in the crypto industry.
Clever Robot News Desk 30th April 2025
