Overview

• A proposed class action filed in New York’s Eastern District accuses Nike of violating consumer protection and securities laws by abruptly shutting down its RTFKT NFT project.
• The plaintiffs claim Nike marketed its RTFKT NFTs as investment opportunities without registering them as securities, leaving buyers with devalued and illiquid assets.
• The lawsuit, led by Jagdeep Cheema, seeks over $5 million in damages, alleging deceptive practices and unjust enrichment by Nike.
• RTFKT NFTs briefly disappeared from display last week due to a Cloudflare hosting downgrade, highlighting concerns over off-chain storage vulnerabilities.
• Nike has not publicly responded to the lawsuit, which comes during heightened regulatory scrutiny of NFTs and digital assets.