Nike Faces $5 Million Lawsuit Over Alleged NFT Securities Violations

Nike, the global sportswear giant, has been hit with a $5 million class-action lawsuit alleging securities violations tied to its RTFKT NFT collection. Plaintiffs claim the company promoted unregistered securities through its digital fashion subsidiary before abruptly withdrawing support in December 2024.

The lawsuit filed in New York’s Eastern District accuses Nike of leveraging its brand prestige to inflate RTFKT NFT values, then leaving investors stranded when it discontinued the project. Allegations include consumer protection violations and misleading marketing practices that allegedly caused significant financial losses for NFT holders.

This case emerges as regulatory scrutiny intensifies around celebrity-endorsed and corporate NFT projects. The outcome could set precedents for how traditional brands navigate digital asset offerings while complying with securities regulations.