Nike Faces Legal Backlash as RTFKT NFT Collapse Leaves Investors Holding the Bag

Another day, another crypto rug pull—only this time it’s a sneaker giant holding the smoking gun. Nike’s RTFKT NFT venture just cratered, sparking a class-action lawsuit from furious collectors who watched their digital assets evaporate faster than a meme coin’s liquidity pool.

When Web3 meets Wall Street: The lawsuit alleges Nike misled investors about the long-term viability of its NFT project. Because nothing says ’decentralized future’ like getting rekt by a Fortune 500 company’s failed experiment.

Bonus finance jab: At least traditional pump-and-dump schemes come with the courtesy of a SEC investigation—here, buyers get blockchain receipts for worthless JPEGs and a masterclass in corporate crypto cynicism.

Nike is facing a new lawsuit from NFT buyers who claim they lost money after the company abruptly shut down its digital asset division.

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, according to 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.

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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.