- Investors claim that RTFKT's Nike closing is a $ 5M “rug pull.”
- Plaintiffs have argued Nike NFTs qualified as unregistered security.
- NFT values crashed after the promised features were that -scrap.
A group of NFT holders filed a class action action against Nike, accusing the company of conducting a “rug pull” along with RTFKT. The lawsuit, filed in the US district court for New York's Eastern District, is seeking $ 5 million in injuries.
Led by RTFKT Holder Jagdeep Cheema, plaintiffs who are said to be Nike -themed Sneaker NFT, which benefited from sales, and then suddenly closed the platform in January 2025. They claimed the left investor with worthless digital assets and massive losses.
Plaintiff claims Nike NFTs are security
The lawsuit argued that the Nike NFTS qualified as security under the Howey Test. According to the plaintiffs, investors put money on a common revenue reliance based on Nike's efforts. Because Nike has never registered NFTs as security, they have been accused of violating US security laws.
Nike got RTFKT in December 2021 during the NFT Boom. RTFKT has established as a leading player with projects such as Clonex and Cryptokicks, combined with gaming, fashion, and blockchain technology. Consumers have promised experiences such as removing events, adventures, and special drops of sneakers associated with NFTs.
But as the NFT market cooled in 2023 and 2024, RTFKT's popularity fell. In December 2024, Nike announced the rotating RTFKT after the final “blade collapse.” Plaintiff argues that this decision has led to the collapse of NFT values almost overnight.
The lawsuit says the promise of features such as removal, peer-to-peer trade, and community challenges disappeared after shutdown. The second market dried up, and prices collapsed, causing major losses for NFT holders.
The complaint describes Nike's actions as a “Brazen Rug pull pull,” accusing the company of abandoning its investors and the RTFKT community. Nike has not yet publicly responded to the lawsuit.
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