Nike sued for $5 million over RTFKT NFTs: check key details
The post Nike sued for $5 million over RTFKT NFTs: check key details appeared on BitcoinEthereumNews.com. Plaintiffs accuse Nike of promoting unregistered securities. NFTs linked to RTFKT fell from $8,000 to $16 after closure. Lawsuit highlights legal uncertainty around NFTs as securities. Nike is facing a $5 million class-action lawsuit that claims the company misled investors by promoting non-fungible tokens (NFTs) tied to its RTFKT platform before abruptly shutting it down. Filed in Brooklyn federal court on 25 April, the lawsuit accuses Nike of orchestrating a “rug pull” by heavily marketing its sneaker-themed NFTs, encouraging investment, and then closing the platform in January 2025. The case highlights growing tensions over the classification of NFTs as securities and comes amid a sharp downturn in NFT market value, with total sales plunging 63% year-on-year in the first quarter. Nike accused of selling unregistered NFTs The class-action group, led by Jagdeep Cheema, alleges that Nike used its brand recognition and marketing strength to promote NFTs that functioned as unregistered securities. According to the lawsuit, Nike encouraged purchases by linking the value of the NFTs to the company’s ongoing promotional efforts, leading investors to expect rising asset values tied directly to the brand’s success. The complaint argues that investors suffered “significant damages” after Nike shuttered RTFKT, destroying the tokens’ value. The suit also claims that Nike violated consumer protection and state competition laws. It seeks $5 million in damages, citing breaches related to marketing unregistered securities and failing to safeguard investors’ interests after shutting down RTFKT. Notably, the case highlights the legal uncertainty surrounding NFTs. Although a United States court has yet to definitively rule on whether NFTs are securities, OpenSea, a major NFT marketplace, argued in an April 9 letter to the Securities and Exchange Commission that NFTs should not fall under securities regulation. Despite this broader debate, the plaintiffs contend that the court does not need to settle…
The post Nike sued for $5 million over RTFKT NFTs: check key details appeared on BitcoinEthereumNews.com.
Plaintiffs accuse Nike of promoting unregistered securities. NFTs linked to RTFKT fell from $8,000 to $16 after closure. Lawsuit highlights legal uncertainty around NFTs as securities. Nike is facing a $5 million class-action lawsuit that claims the company misled investors by promoting non-fungible tokens (NFTs) tied to its RTFKT platform before abruptly shutting it down. Filed in Brooklyn federal court on 25 April, the lawsuit accuses Nike of orchestrating a “rug pull” by heavily marketing its sneaker-themed NFTs, encouraging investment, and then closing the platform in January 2025. The case highlights growing tensions over the classification of NFTs as securities and comes amid a sharp downturn in NFT market value, with total sales plunging 63% year-on-year in the first quarter. Nike accused of selling unregistered NFTs The class-action group, led by Jagdeep Cheema, alleges that Nike used its brand recognition and marketing strength to promote NFTs that functioned as unregistered securities. According to the lawsuit, Nike encouraged purchases by linking the value of the NFTs to the company’s ongoing promotional efforts, leading investors to expect rising asset values tied directly to the brand’s success. The complaint argues that investors suffered “significant damages” after Nike shuttered RTFKT, destroying the tokens’ value. The suit also claims that Nike violated consumer protection and state competition laws. It seeks $5 million in damages, citing breaches related to marketing unregistered securities and failing to safeguard investors’ interests after shutting down RTFKT. Notably, the case highlights the legal uncertainty surrounding NFTs. Although a United States court has yet to definitively rule on whether NFTs are securities, OpenSea, a major NFT marketplace, argued in an April 9 letter to the Securities and Exchange Commission that NFTs should not fall under securities regulation. Despite this broader debate, the plaintiffs contend that the court does not need to settle…
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