Nike is facing a $5 million class action lawsuit for allegedly abandoning NFT investors after shutting down its RTFKT subsidiary. The plaintiffs claim that Nike, by leveraging its reputable brand, misrepresented the nature of RTFKT's NFTs as registered securities while generating hype and profits. After the closure of operations in December 2024, many investors found themselves holding devalued and essentially worthless NFTs. The lawsuit alleges Nike engaged in deceptive practices that violated consumer protection laws across several states. This case arrives amid ongoing discussion around how NFTs should be classified under U.S. law, with claims that Nike neglected to disclose that the NFTs were unregistered securities. Additionally, the RTFKT NFTs experienced a significant loss of support, leading to drastic drops in their market value, further complicating the situation for investors who expected stability and value appreciation. The RTFKT platform's shutdown has raised concerns not only for the impacted investors but for the broader NFT market as well, highlighting regulatory challenges and increasing scrutiny on NFT classifications.

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