{"id":23453,"date":"2025-04-27T10:37:47","date_gmt":"2025-04-27T07:37:47","guid":{"rendered":"https:\/\/forklog.com\/en\/nike-faces-lawsuit-over-nft-project-closure\/"},"modified":"2025-04-27T10:37:47","modified_gmt":"2025-04-27T07:37:47","slug":"nike-faces-lawsuit-over-nft-project-closure","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/nike-faces-lawsuit-over-nft-project-closure\/","title":{"rendered":"Nike Faces Lawsuit Over NFT Project Closure"},"content":{"rendered":"<p>Buyers of NFTs from Nike-affiliated studio RTFKT have filed a class action lawsuit against the company, seeking compensation for losses due to the project&#8217;s termination, as reported by <a href=\"https:\/\/www.reuters.com\/sustainability\/boards-policy-regulation\/nike-sued-over-closure-crypto-business-2025-04-25\/\">Reuters<\/a>.<\/p>\n<p>Nike acquired RTFKT in 2021 to &#8220;expand its digital presence.&#8221; As a division of the corporation, the studio released several NFT collections and &#8220;digital sneakers&#8221; under its own brand.<\/p>\n<p>In December 2024, amidst a <a href=\"https:\/\/forklog.com\/en\/news\/experts-declare-96-of-nfts-dead\">decline in popularity<\/a> of the non-fungible token and metaverse segments, RTFKT <a href=\"https:\/\/docs.google.com\/document\/d\/1AJTjeJqfzg2syJAO8z5dIaKloqM7qVWs8tzCKv9SZzE\/edit?tab=t.0\">announced<\/a> it would cease operations by the end of 2025. The team clarified that the issued tokens would remain in circulation after the closure.<\/p>\n<p>According to Reuters, on April 25, Australian Jagdeep Chima filed a class action lawsuit against Nike in federal court in New York. He claims that the announcement of RTFKT&#8217;s closure led to a decline in demand for the project&#8217;s non-fungible tokens, causing financial harm to their holders.<\/p>\n<p>The plaintiff argues that users would not have agreed to purchase the NFTs under the same conditions had they known they would &#8220;turn out to be unregistered securities,&#8221; and that Nike would &#8220;pull the rug out from under them.&#8221; <\/p>\n<p>The claimant seeks over $5 million in compensation for alleged violations of consumer protection laws in New York, California, Florida, and Oregon.<\/p>\n<p>Earlier, more than 19,800 digital avatars from RTFKT&#8217;s NFT collection lost their associated images and videos due to an issue with Cloudflare&#8217;s service, but the team soon <a href=\"https:\/\/forklog.com\/en\/news\/clonex-nft-avatars-reappear-after-temporary-disappearance\">restored<\/a> access to the content.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buyers of NFTs from Nike-affiliated studio RTFKT have filed a class action lawsuit against the company, seeking compensation for losses due to the project&#8217;s termination, as reported by Reuters. Nike acquired RTFKT in 2021 to &#8220;expand its digital presence.&#8221; As a division of the corporation, the studio released several NFT collections and &#8220;digital sneakers&#8221; under [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,1213,1721],"class_list":["post-23453","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-nft","tag-nike"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/23453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=23453"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/23453\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/23452"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=23453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=23453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=23453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}