Nike Faces $5 Million Lawsuit Over Collapsed RTFKT NFT Project

Nike is embroiled in a $5 million lawsuit following the collapse of its RTFKT NFT project. Investors allege the sportswear giant’s abrupt closure of the venture led to a dramatic devaluation of Nike-branded digital assets, erasing millions in investments.

The plaintiffs accuse Nike of promoting unregistered securities through its NFT offerings before executing what they describe as a ’rug pull.’ Court documents suggest the company Leveraged its brand influence to drive demand for the assets, only to withdraw support suddenly.

RTFKT, acquired by Nike after generating $168 million in sales, previously gained prominence through celebrity endorsements from Elon Musk and Kanye West. The project’s disappearance has left investors questioning the accountability of major corporations entering the Web3 space.