Nike Hit With $5M Lawsuit After Abrupt NFT Platform Shutdown
Sportswear giant Nike faces legal backlash as investors claim $5M in losses from its failed NFT venture. The lawsuit alleges abrupt platform termination left holders with worthless digital assets—another cautionary tale of corporate crypto experiments gone awry.
Plaintiffs argue Nike overpromised utility and longevity for its .SWOOSH NFTs. The complaint surfaces just as legacy brands face increasing scrutiny over Web3 initiatives that often prioritize hype over sustainable tokenomics.
This comes amid broader market skepticism toward celebrity and corporate NFT plays—where ’first-mover advantage’ frequently translates to ’exit liquidity for insiders.’ The case may set precedents for accountability in branded blockchain projects.
Nike’s Digital Ambitions Hit a Roadblock After RTFKT Closed
The sportswear giant entered the NFT space in 2021 when it acquired RTFKT, a digital fashion and collectibles brand that merged gaming, culture and blockchain technology. The company promoted the acquisition as a push into next-generation innovation.
At its height, RTFKT’s NFTs generated around $168m in sales, fueled by Nike’s marketing power and growing excitement around digital ownership.
However, the momentum faded. Nike announced RTFKT’s winddown on Dec. 2, 2024, saying that the spirit of innovation would continue through creators and projects inspired by the brand.
Nike Faces Heat Over Alleged Failure to Disclose NFT Risks
Investors argue that Nike’s closure of RTFKT blindsided them. They claim the company failed to disclose regulatory risks tied to NFTs. Moreover, they point out that the legal classification of NFTs under US securities law remains unsettled.
The lawsuit seeks more than $5m in damages. It cites alleged violations of consumer protection laws in New York, California, Florida, and Oregon. In addition, the case raises broader questions about how brands should approach Web3 ventures as regulatory scrutiny over digital assets continues to intensify.
