Nike Faces Lawsuit from Crypto Investors Over Abrupt Metaverse Exit
Nike is facing a lawsuit after shutting down its non-fungible token (NFT) business in December. The company acquired RTFKT Studios in 2021, a firm known for digital collectibles and sneaker designs, and entered the metaverse.
However, following the closure, investors, led by Jagdeep Cheema, filed a suit claiming significant losses from Nike-themed NFTs and crypto assets. They argue that they would not have invested had they known the tokens were unregistered securities, and accuse Nike of orchestrating a “rug pull” by abandoning the project. The investors are seeking over $5 million in damages for alleged violations of consumer laws across multiple states. Nike has yet to respond to the lawsuit.
Clever Robot News Desk 28th April 2025
