A Nike NFT lawsuit has been filed by a group of investors who claim they lost hundreds of thousands of dollars after the company abruptly shut down its RTFKT platform in December 2024. Lead plaintiff Jagdeep Chima, an Australian investor, alleges that Nike failed to properly warn users about the shutdown, causing massive devaluation of their NFTs.
Nike NFT Lawsuit Focuses on Investor Losses
After RTFKT’s closure, many NFTs branded under Nike and RTFKT plummeted in value. Some non-fungible tokens even stopped displaying images correctly, raising concerns about long-term asset support.
The lawsuit claims that buyers would not have purchased any NFTs if they had known they were acquiring unregistered securities. Investors argue that they also would not have invested if Nike had disclosed its willingness to abandon the project so quickly.
Legal Claims Against Nike Across Multiple States
The plaintiffs accuse Nike of violating consumer protection laws in several U.S. states, including New York, California, Florida, and Oregon. They are seeking damages of no less than $5 million.
This Nike NFT lawsuit underscores the challenges of digital asset investments tied to major brands. What once seemed like a bold move into the future of fashion and gaming — Nike’s 2021 acquisition of RTFKT — has turned into a legal headache.
Technical Problems Following the Shutdown
After the December 2024 shutdown, many users reported technical issues with their NFTs, such as missing images. These problems fueled speculation that Nike had stopped paying for servers hosting NFT metadata and assets.
RTFKT, pronounced “artifact,” was once a symbol of Nike’s ambitions in digital collectibles. However, its sudden demise has now left many investors questioning the company’s commitment to digital innovation.
