Nike Sued For Closing Crypto Asset Business

NFT Nike, closed and got a lawsuit from the buyer. (photo: x @coinspace_)

JAKARTA - Nike Inc. was sued by buyers of Nike-themed digital assets, including non-fungible tokens (NFT), which claimed to have suffered heavy losses after the sports equipment company suddenly closed the business unit that made the assets.

The lawsuit, which was filed on Friday, April 25, demanded undisclosed compensation of the exact amount, but is estimated at more than $5 million, based on alleged violations of consumer protection laws in the states of New York, California, Florida, and Oregon.

In a class action lawsuit filed in Brooklyn federal court, New York, Australian-led buyers Jagdeep Cheema said that the sudden closure of the RTFKT unit in December last year made the request for their NFT plummet drastically.

The plaintiffs stated that they would not buy the NFT, or at least not at high prices, if they found out that the token was an unregistered securities, and that Nike would "attend the carpet from below them" by closing the business.

Nike, based in feasibilityton, Oregon, has yet to provide official comments regarding this lawsuit. Meanwhile, Phillip Kim, the lawyer representing the plaintiff, also declined to give a statement.

The legal status of NFT itself is still a debate, where many legal cases are rolling on whether NFT can be categorized as securities under US federal law.

For information, Nike acquired the RTFKT (readed "artific") in December 2021. At that time, Nike stated that this fashion brand used cutting-edge innovations to create a collection of new generations that combines culture and the gaming world.

However, on December 2, 2024, Nike announced that the process of stopping RTFKT's operations had been completed, confirming that the innovations carried by RTFKT would remain alive through "many creators and projects" inspired by them.