Nike Sued for ‘Rug Pull’ in RTFKT NFT Platform Shutdown

A class-action lawsuit has been filed against Nike, accusing the company of operating a ‘rug pull’ after abruptly shutting down its non-fungible token (NFT) platform, RTFKT, earlier this year. The suit, filed in a Brooklyn federal court on April 25th, alleges that Nike used its brand and marketing power to lure investors into purchasing NFTs with the promise of future growth, before abandoning the project without warning, causing significant financial losses to those who held the tokens. Plaintiff Jagdeep Cheema argues that the NFTs qualify as unregistered securities under US law and were promoted as investments with high potential returns.