In December 2024, Nike unexpectedly decided to shut down its NFT division, RTFKT. This decision has now led to a lawsuit filed by a group of buyers who claim to have suffered significant financial losses as a result.

Sudden shutdown sparks outrage

According to the lawsuit, the value of Nike-related NFTs dropped sharply after the shutdown. Buyers state that they were not properly informed about the discontinuation, causing their digital collectibles to suddenly lose value. Some NFTs have since shown technical issues, such as images not displaying correctly. This has raised concerns about the continued support for these digital assets.

The group of plaintiffs, led by an Australian investor, is seeking damages of more than five million dollars, citing consumer protection laws in several U.S. states.

New questions about the legal status of NFTs

A key point in the case revolves around whether NFTs should be considered securities. The plaintiffs argue that the NFTs were sold without proper registration, which they claim violates existing regulations designed to protect investors. This lawsuit could have a significant impact on how digital assets are legally treated in the future.

Technical issues fuel uncertainty

After the shutdown, several users reported that their RTFKT NFTs were no longer functioning properly. For example, images from popular series such as Clone X were no longer visible, and users instead received a generic error message. This fueled speculation that essential infrastructure was no longer being maintained.

Although Nike stated at the time that the spirit of innovation brought by RTFKT would live on through new projects and creators, many buyers feel abandoned. The situation highlights how vulnerable digital assets can be when they rely on centralized platforms.

Disclaimer: This is not financial advice. Always consider conducting your own research and seeking professional advice.