Investors sue Nike for alleged NFT ‘soft rug pull’
Plaintiffs allege Nike promoted unregistered NFTs and failed to disclose key information before winding down RTFKT operations.
Nike faces a proposed $5 million class action lawsuit accusing the sportswear giant of abandoning investors in its sneaker-themed NFTs. Filed on Friday, the complaint alleges that Nike promoted its digital assets through RTFKT. It then pulled back support, causing the NFTs to lose value.
The plaintiffs claim that Nike engaged in a ‘soft rug pull‘ by hyping the NFTs and later winding down RTFKT’s operations. They argue that the NFTs were unregistered securities and that Nike failed to provide key disclosures that registration would have required.
Investors allege they would not have purchased the NFTs if they had known about the risks or Nike’s plans to exit the project.
Even if the NFTs are not classified as securities, the lawsuit contends that Nike’s actions violated consumer protection laws across several US states. Plaintiffs further accuse Nike of unjust enrichment, profiting from NFT sales while leaving buyers with losses.
Nike has not yet responded publicly. Meanwhile, RTFKT’s NFTs briefly disappeared last week due to a hosting issue, compounding concerns among collectors.
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