Nike faces class action lawsuit from NFT holders for shutting down its RTFKT encryption business, seeking over $5 million in compensation

BlockBeats News: On April 27th, according to Reuters, Nike was sued by NFT holders for suddenly shutting down its cryptocurrency business. The plaintiff, led by Australian resident Jagdeep Cheema, filed a lawsuit in Brooklyn Federal Court in New York, alleging that Nike's sudden closure of its RTFKT division in December 2024 led to a sharp decline in its NFT demand. The plaintiff stated that if they had known in advance that these tokens were unregistered securities and Nike would have "suddenly withdrawn," they would not have purchased these NFTs at the current price, or even not at all. The lawsuit accuses Nike of violating consumer protection laws in New York, California, Florida, and Oregon, and demands compensation exceeding $5 million. Nike acquired RTFKT in December 2021 and announced the closure of the business on December 2, 2024.