- Nike faces a class action lawsuit over allegations of misleading buyers after shutting down its RTFKT digital asset unit in December 2024.
- Plaintiffs claim Nike’s abrupt RTFKT closure caused NFT value collapse, accusing the company of selling unregistered securities without proper disclosure.
Nike Inc. is now facing a class-action lawsuit in the Eastern District Court of New York. According to Reuters, the lawsuit stems from the company’s decision to shut down its RTFKT unit in December 2024. RTFKT itself is known as a subsidiary that focuses on NFTs and digital assets.
This move has angered several NFT buyers, who accuse Nike of misleading them by selling “unregistered securities.” The plaintiffs are now seeking more than $5 million in damages.
Nike Faces Rug Pull Allegations Amid RTFKT Shutdown Fallout
RTFKT was once a rising star in the digital world. Since being acquired by Nike in 2021, the unit has created sneaker-themed NFTs such as CloneX and Cryptokicks. In fact, it has recorded sales of more than $168 million.
However, the sudden decision to shut down its operations has caused the value of the NFTs to plummet. For owners, this situation certainly feels like buying expensive concert tickets, only to find out that the concert has been canceled without notice.
On the other hand, the lawsuit brings serious allegations. The plaintiffs argue that Nike is engaging in “rug pulling”—withdrawing support from a project that has been promoted and causing significant losses for investors.
They also stated that if they had known from the start that the NFT was an unregistered security, they would not have purchased it. Of course, this complicates Nike’s legal position, especially considering that the NFT market itself is still in a regulatory gray area.
Despite Setbacks, NFT Gaming and Digital Expansion Forge Ahead
If we look at the latest developments in the NFT space, Nike is actually not the only one facing challenges. On April 16, 2025, Futureverse, a metaverse infrastructure company from New Zealand, moved aggressively by acquiring Candy Digital. This company is renowned for its partnerships with DC Comics, Netflix, and Major League Baseball.
More than 4 million NFTs and 1.5 million user accounts were added to the Futureverse environment by this action. Imagine: everyone else is still debating admission tickets while they are attempting to construct a new “digital stadium.”
Furthermore, a report from Research and Markets projects that the NFT sector in the gaming industry will jump from $4.8 billion in 2024 to $44.1 billion in 2034. Gaming giants such as Ubisoft, Square Enix, Epic Games, and Sega are also starting to explore NFT integration into their platforms.
So, while the storm has hit some projects, on the other hand, there are many who still see a bright future in this digital world.
Still, there are obvious indications of a change. For instance, as we previously reported, LG plans to shut down its NFT market, Art Lab, on June 17, 2025. The platform, which launched in 2022, previously allowed users to buy and display digital artwork through their TVs.
X2Y2, an NFT marketplace that was quite popular in early 2022, also announced that it would cease operations on April 30, 2025. However, they will still maintain smart contracts so that users can manage their assets.
