Finance
Nike sued over closure of crypto business
Published by Global Banking & Finance Review®
Posted on April 25, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 25, 2025
2 min readLast updated: January 24, 2026
Nike is sued for closing its crypto business, impacting NFT buyers who claim financial losses. The lawsuit questions the legal status of NFTs.
By Jonathan Stempel
NEW YORK (Reuters) -Nike was sued on Friday by purchasers of Nike-themed non-fungible tokens (NFTs) and other cryptocurrency assets who said they suffered significant losses when the athletic wear company abruptly closed the business that created those assets.
In a proposed class action filed in Brooklyn, New York federal court, purchasers led by Australian resident Jagdeep Cheema said the sudden closure in December of Nike's RTFKT unit caused demand for their NFTs to dry up.
They said they would never have bought the NFTs at the prices they did, or at all, had they known the tokens were unregistered securities, and that Nike would "cause the rug to be pulled out from under them."
Nike, based in Beaverton, Oregon, did not immediately respond to requests for comment. Phillip Kim, a lawyer for the plaintiffs, declined to comment.
The legal status of NFTs is unsettled, and there has been much litigation over whether they are securities under federal law.
Friday's lawsuit sought unspecified damages of more than $5 million for alleged violations of New York, California, Florida and Oregon consumer protection laws.
Nike bought RTFKT, pronounced "artifact," in December 2021, saying the fashion brand was leveraging "cutting edge innovation to deliver next generation collectibles that merge culture and gaming."
It announced RTFKT's since-completed winddown on December 2, 2024, while projecting that the innovation RTFKT represented would live on through the "countless creators and projects" it inspired.
The case is Cheema v Nike Inc, U.S. District Court, Eastern District of New York, No. 25-02305.
(Reporting by Jonathan Stempel in New York; Editing by Cynthia Osterman)
The lawsuit claims that purchasers of Nike-themed NFTs suffered significant losses due to the sudden closure of Nike's RTFKT unit, which they argue were unregistered securities.
The lawsuit seeks unspecified damages of more than $5 million for alleged violations of consumer protection laws in multiple states.
Nike announced the completion of RTFKT's winddown on December 2, 2024, indicating that the innovation it represented would continue through other creators and projects.
The lawsuit is led by Jagdeep Cheema, an Australian resident, along with other purchasers of the NFTs.
The legal status of NFTs remains unsettled, with ongoing litigation regarding whether they qualify as securities under federal law.
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