Nike Accused of Rug Pull Over Failed RTFKT NFT Project
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The lawsuit was filed on April 25 by a group led by Jagdeep Cheema, and argues that Nike used its global brand to promote unregistered securities in the form of sneaker-themed NFTs. After the platform’s abrupt shutdown in January, the value of the NFTs collapsed, prompting the group to seek $5 million in damages. Meanwhile, cryptocurrency exchange Bitget is also dealing with legal issues, and will be sending letters to eight account holders accused of manipulating the VOXEL/USDT futures contract. Bitget pledged to return recovered funds to affected users. In Nigeria, authorities were granted permission to arrest six people linked to alleged fraud through the Crypto Bridge Exchange (CBEX), where around $620,000 was reportedly stolen from investors. Nike Faces Class-Action Lawsuit Nike is facing a class-action lawsuit that accuses the company of conducting a “rug pull” by shutting down its non-fungible token (NFT) platform, RTFKT, in January. The lawsuit was filed on April 25 in a Brooklyn federal court by a group of RTFKT users led by Jagdeep Cheema. It claims that investors suffered “significant damages” after Nike promoted its sneaker-themed NFTs to attract buyers, only to later close the platform. The plaintiffs also argue that Nike’s NFTs were unregistered securities because their value was tied to the company’s brand and marketing efforts, and they were sold without proper registration with the Securities and Exchange Commission (SEC). NFTs are unique digital assets stored on a blockchain that prove ownership of a specific item, like art, music, or collectibles. Unlike cryptocurrencies like Bitcoin, which are identical and interchangeable, each NFT is distinct and cannot be replaced by another. This uniqueness makes NFTs valuable for representing ownership of rare or original digital goods. The lawsuit alleges that Nike used its global brand power to boost and promote the NFTs, which led buyers…
Filed under: News - @ April 28, 2025 9:27 am