Nike Sued Over Abrupt Shutdown of RTFKT NFT Unit
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Nike faces legal action from a group of NFT buyers who allege significant financial losses following the sudden closure of its digital collectibles arm, RTFKT. The lawsuit, filed in Brooklyn, New York, highlights the abrupt devaluation of NFTs tied to the Nike and RTFKT brands.
Lead plaintiff Jagdeep Cheema, an Australian investor, claims the December 2024 shutdown rendered the NFTs worthless. Buyers argue Nike provided no prior warning, leaving them stranded as the assets lost functionality and market interest.
The plaintiffs contend the NFTs were unregistered securities—a fact they claim would have deterred their purchases. The case underscores growing scrutiny over corporate accountability in the volatile NFT market.
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