Nike Faces $5 Million Lawsuit Over Shutdown of NFT Platform 'RTFKT'

Uk Jin

Summary

Nike is reportedly facing a $5 million class-action lawsuit from investors due to the unauthorized shutdown of the NFT platform RTFKT.
Users claim that Nike sold NFTs, which are unregistered securities, without SEC approval.
The price of RTFKT NFTs has plummeted from $8,000 at launch to $16 currently.

Sportswear brand Nike is facing a major lawsuit due to the failure of its Web3 business.

On the 27th (local time), cryptocurrency-focused media outlet Cointelegraph reported that users of Nike's non-fungible token (NFT) platform 'RTFKT' are proceeding with a $5 million class-action lawsuit against Nike.

Users, including Jagdeep Cheema, claimed that "Nike NFTs were expected to grow based on the brand, but RTFKT was shut down without notice, causing harm to investors," and "Nike sold NFTs, which are unregistered securities, without SEC approval."

Previously, in January, Nike's RTFKT completely shut down its services.

Meanwhile, according to OpenSea, the price of RTFKT NFTs, which was $8,000 (3.5 ETH) at the time of their initial release in April 2022, has plummeted to approximately $16 (0.009 ETH) as of now.