30 April 2025 — An Australian client has launched a proposed class-action lawsuit against Nike in the United States, alleging that the company’s NFT platform, RTFKT, abruptly closed, causing financial losses.
The multinational sportswear behemoth is accused in the case of unethical and dishonest commercial practices related to its digital collectibles effort. Despite prior marketing that suggested long-term usage and worth, the plaintiff claims that Nike’s decision to shut down RTFKT in December 2024 significantly decreased the value of the NFTs (non-fungible tokens) they had bought, according to court documents.
In late 2021, Nike purchased RTFKT, promoting the acquisition as a measure to increase its presence in the metaverse and digital asset markets. Founded in 2020, RTFKT quickly became well-known for using game engines, augmented reality, and blockchain technology to create digital sneakers and metaverse collectibles.
But according to the plaintiff, the disputed NFTs were never registered with the SEC, which raises questions about whether Nike deceived consumers by marketing possibly unregulated digital securities. According to the lawsuit, customers would not have paid premium pricing for the tokens if they had realized the assets were unregistered or that Nike may shut down the platform. Damages of at least $5 million are sought in the lawsuit.
Nike’s legal troubles place it among a growing list of sports and entertainment brands—including the NFL Players Association and DraftKings—that have faced scrutiny over their NFT ventures amid declining market interest and intensifying regulatory oversight.
The fall of RTFKT highlights a broader cooling in the Web3 and NFT sectors. Once hailed as the future of digital ownership and branding, NFTs have seen a sharp downturn in both consumer enthusiasm and market value over the past year. Companies across industries are now reassessing their investments in blockchain-based platforms and the metaverse.
While Nike has yet to comment publicly on the lawsuit, the case could set a significant precedent in how corporations navigate responsibility and disclosure in emerging digital markets.
