Nike Hit With $5M Lawsuit as NFT Buyers Lose Big After RTFKT Shutdown
Nidhi Kolhapur26 Apr 20251 min read
Nike is facing a new lawsuit from NFT buyers who claim they lost money after the company abruptly shut down its digital asset division.
Buyers Claim Nike’s RTFKT Shutdown Caused NFT Losses
A group of buyers, led by Australian resident Jagdee Cheema, filed a class action lawsuit in New York, claiming that when Nike suddenly shut down its RTFKT unit in December 2024, the value and demand for their NFTs collapsed, reported Reuters. The unit had created Nike-themed NFTs and crypto assets.
The legal status of NFTs is still unclear, with ongoing debates about whether they are considered securities. The lawsuit, filed on Friday, seeks over $5 million in damages for violations of consumer protection laws in New York, California, Florida, and Oregon.
In December 2021, Nike acquired RTFKT, pronounced “artifact,” with the vision of merging cutting-edge technology and cultural trends to create the next generation of collectibles.
Although RTFKT officially closed in December 2024, Nike emphasized that its impact would continue through the countless creators and projects it inspired.
In March 2025, Rosen Law Firm, a global investor rights law firm, announced an investigation into potential claims on behalf of buyers of the Nike-themed NFTs issued by RTFKT. The firm is preparing a class action lawsuit to help investors recover losses, with payment required only if they win. This investigation is part of the broader legal battle over the collapse in value of Nike NFTs, with claims seeking more than $5 million in damages.
