Sportswear titan Nike finds itself in hot water. A class-action lawsuit filed in New York federal court accuses the company of orchestrating a soft rug pull tied to its now-defunct RTFKT NFT project. The $5 million Nike lawsuit alleges the brand abruptly abandoned its Web3 venture, leaving collectors with worthless digital assets and violating securities laws.
In the NFT world, this case has done more than raise eyebrows. It has reignited debates about corporate responsibility and sent another shockwave through an industry still nursing old bruises.
Nike dipped its toes into the metaverse in late 2021, and it did not do it quietly. The company snapped up digital fashion studio RTFKT in a move that felt less like an experiment and more like a statement. This was Nike planting a flag and saying it planned to be part of whatever culture and commerce were becoming next.
That partnership quickly gave birth to CloneX, a slick collection of 3D avatars that were not just meant to be admired. Owning one worked like a backstage pass, unlocking special events, exclusive perks, and even real-world Nike merch. In classic Nike fashion, the digital and physical worlds were stitched together with intention. The hype was real. At its peak, CloneX NFTs traded around 20 ETH, roughly $60,000 at the time, and holders felt they were buying into something bigger than art.
Then the energy quietly drained from the room.
By mid-2024, Nike wound down RTFKT’s operations with little warning. Community rewards stopped, roadmap updates disappeared, and communication faded. The impact was swift and brutal. CloneX floor prices collapsed to around 0.15 ETH, now under $450, leaving many holders stunned and angry.
Plaintiffs say this slow retreat looks a lot like a soft rug pull, a familiar crypto playbook where support is gradually withdrawn until value evaporates. According to the lawsuit, Nike marketed CloneX in ways that suggested future returns tied to ecosystem growth, effectively turning the NFTs into unregistered securities under the Howey Test. “Nike lured buyers with roadmaps it never intended to fulfill,” the plaintiffs’ attorney said, accusing the company of riding crypto hype and abandoning holders once the buzz cooled. The lawsuit also alleges deceptive practices under consumer protection laws, seeking compensation for financial losses and emotional distress.
Nike, for its part, has pushed back. The company says RTFKT’s shutdown was part of a broader strategic realignment in response to changing market conditions. “We remain committed to innovation,” a Nike spokesperson said, though critics point to the brand’s growing focus on AI-driven apparel as evidence that its Web3 chapter may already be closing.
For many in the crypto community, this case has become symbolic. “This isn’t just about Nike,” one analyst said. “It’s about whether big brands can enter NFTs, cash in on the hype, and walk away without consequences.” At stake is more than one collection’s floor price. It is trust in Web3 itself.
As the case inches ahead, everyone in crypto is watching from the sidelines. Will this finally bring some clarity to how celebrity-driven and big-brand NFT projects should be handled, or will it just add another layer of doubt around corporate forays into Web3? For now, CloneX holders are stuck in limbo, refreshing timelines and waiting for answers, with a sobering reminder that even global sneaker giants can stumble once they step into the metaverse.
The next court hearing is scheduled for June 12, 2025, when Nike’s motion to dismiss will be challenged. One thing feels clear already: this legal fight is far from a slam dunk.
Nike did not immediately respond to AltCoinDesk’s request for comment.
