From Cointelegraph

April 27, 2025 10:40 PM:

Nike faces a class-action lawsuit alleging it operated a rug pull by shutting down its NFT platform RTFKT, causing significant damages to investors. The suit claims Nike sold unregistered securities and used its brand to promote the NFTs. The lawsuit seeks $5 million in damages for consumer protection law violations.

Nike’s NFT market value dropped sharply after the platform closure. Nike acquired RTFKT Studios in 2021, offering virtual sneakers as NFTs that could be traded peer-to-peer. The Nike NFTs initially traded for 3.5 ETH but plummeted to 0.009 ETH. The market value of NFTs overall saw a 63% decline in Q1 of 2025.

Investors claim Nike’s shutdown of RTFKT decimated prices and prevented participation in challenges. The NFT market, including Nike’s NFTs, saw a significant decrease in sales in the first quarter of 2025, dropping to $1.5 billion from $4.1 billion year-over-year. Nike has not commented on the lawsuit so far.

Read more at Cointelegraph: Nike sued for $5 million over its shutdown of NFT platform RTFKT