Nike and the NFT World

Nike, the sport and fashion giant, now faces a $5 million class-action lawsuit filed by a group of RTFKT users — a platform the company acquired in 2021. The suit was filed in the Eastern District of New York on April 25, in response to what the plaintiffs describe as “significant damages” following the platform’s closure in January 2025.

Founded in 2020, RTFKT specialized in the sale of digital sneakers and collectibles designed for use by avatars across various metaverse applications. Nike’s acquisition of RTFKT was conceived as a move to capitalize on the studio’s blockchain expertise and capture a younger, digitally immersive audience. The lawsuit, however, alleges that the NFTs promoted as part of RTFKT’s product line were, in fact, unregistered securities — sold by Nike without the requisite registration with the U.S. Securities and Exchange Commission (SEC).

The plaintiffs contend they would not have made their purchases had they been informed that the NFTs were considered unregistered securities. The suit further alleges that Nike violated consumer protection and unfair competition laws by shutting down the RTFKT platform. The legal landscape is further complicated by the fact that the regulatory status of NFTs remains actively contested — particularly following the SEC‘s 2023 determination that certain NFTs qualify as securities.

As a succession of recent cases lays bare the legal complexities inherent in digital assets, the industry is watching this litigation closely. Nike, for its part, has declined to issue any public comment on the lawsuit — leaving analysts and investors to speculate on the potential consequences for a brand still pressing its ambitions in the digital world.