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 space, the case has spurred conversations about corporate responsibility and rocked the crypto world.
In an attempt to gain control of the metaverse, Nike started its entry into NFTs in late 2021 when it purchased digital fashion startup RTFKT Studios. The collaboration birthed hyped collections like CloneX—3D avatars that doubled as membership keys for exclusive perks, events, and physical merchandise. Initially, CloneX NFTs soared, with floor prices peaking at 20 ETH (roughly $60,000 at the time). But by mid-2024, Nike quietly wound down RTFKT’s operations, discontinuing community rewards and halting roadmap updates. CloneX floor values subsequently cratered to 0.15 ETH (under $450 today), prompting outrage.
Plaintiffs argue Nike’s sudden exit mirrors a soft rug pull—a tactic where developers gradually withdraw support, causing asset values to collapse. Legal filings claim the company marketed CloneX as investment contracts, promising returns through ecosystem growth, thus qualifying the NFTs as unregistered securities under the Howey Test. “Nike lured buyers with roadmaps it never intended to fulfill,” said the plaintiff’s attorney. They exploited crypto hype, then left holders holding the bag. The Nike lawsuit also accuses the brand of deceptive practices under consumer protection laws, seeking damages for financial losses and emotional distress.
Nike has denied wrongdoing, stating RTFKT’s closure stemmed from a strategic realignment amid shifting market conditions. “We remain committed to innovation,” a spokesperson said, though critics note the brand’s recent pivot toward AI-driven apparel. Meanwhile, the case has become a rallying cry for NFT enthusiasts. “This isn’t just about Nike—it’s about setting a precedent,” argued a crypto analyst. If corporations can dump NFTs without consequences, trust in Web3 dies.
As the Nike lawsuit unfolds, the crypto world watches closely. Will this case force clearer regulations for celebrity or corporate-linked NFTs? Or will it deepen skepticism toward mainstream brands dabbling in decentralized tech? For now, CloneX holders await justice—and a reminder that even sneaker giants can stumble in the metaverse.
The next court hearing is set for June 12, 2025, where Nike’s motion to dismiss will be challenged. One thing’s certain—this legal showdown is far from a slam dunk.
Nike has not immediately responded to Altcoin Desk’s request for comments.
