Nike’s $5 million NFT nightmare just exploded in their faces. The sportswear giant got slapped with a class-action lawsuit after suddenly shuttering RTFKT, their NFT platform acquired in 2021. Led by investor Jagdeep Cheema, the suit claims Nike pulled a classic “rug pull,” leaving digital sneaker collectors holding worthless tokens. Initially selling for 3.5 Ethereum each, these virtual kicks are now about as valuable as last season’s gym socks. Turns out “Just Do It” doesn’t apply to maintaining digital platforms.
Nike’s grand experiment with digital sneakers just exploded in its face. The sportswear giant is now staring down a $5 million class-action lawsuit after abruptly shutting down RTFKT, its NFT platform, in December 2024. Talk about dropping the digital ball.
The mess started when Nike acquired RTFKT in late 2021, riding high on the NFT wave with promises of revolutionary sneaker-themed digital collectibles. They hyped it up, marketed it hard, and convinced investors they were getting in on the ground floor of something huge. Spoiler alert: They weren’t.
Now Jagdeep Cheema is leading the charge in Brooklyn federal court, accusing Nike of pulling a classic “rug pull” – crypto-speak for taking the money and running. The lawsuit, filed in April 2025, claims Nike violated consumer protection laws across multiple states and sold unregistered securities. The legal action was filed in the U.S. District Court for the Eastern District of New York. Yeah, that’s a problem.
Nike faces $5M lawsuit after RTFKT shutdown, with investors claiming the sportswear giant pulled a classic crypto rug-pull scheme.
The whole debacle has turned into a legal nightmare, with investors crying foul over Nike’s sudden ghosting act. They’re not just mad about losing money; they’re furious about the complete lack of transparency. Nike’s marketing machine had convinced them these digital kicks were the next big thing. Instead, they got left holding worthless virtual sneakers. The initial NFTs that sold for 3.5 Ethereum each have become practically worthless.
The case could set some serious precedents, especially regarding whether NFTs should be classified as securities. The SEC hasn’t made up its mind yet, and OpenSea’s been arguing that NFTs are their own special beast. But Nike might have accidentally stepped right into the regulatory quicksand.
For investors, it’s a straight-up disaster. Their digital collectibles are now about as valuable as a screen door on a submarine. The platform’s shutdown didn’t just tank the value – it obliterated the entire market for Nike-themed digital collectibles.
And while Nike’s lawyers gear up for battle, investors are left wondering how a company known for “Just Do It” ended up with “Just Done It” instead.
