rewrite this title and make it good for SEO Nike Faces $5M Lawsuit After Shutting Down RTFKT NFT Unit – Cryptoflies News

Nike is facing a class action lawsuit from buyers of non-fungible tokens (NFTs) tied to its RTFKT project. The lawsuit, filed Friday in federal court in Brooklyn, claims buyers suffered major losses when Nike shut down the RTFKT unit.

According to the complaint, buyers say they would not have purchased the NFTs at the prices they did if they had known the project would eventually close. The shutdown, they argue, caused demand and prices for the NFTs to fall sharply.

The lawsuit seeks more than $5 million in damages for alleged violations of consumer protection laws in New York, California, Florida, and Oregon.

RTFKT announced the shutdown of its operations last December. While it did not offer specific reasons, the company said that “RTFKT isn’t ending. It’s becoming what it was always meant to be an Artifact of cultural revolution.” Before shutting down, RTFKT held a final NFT drop.

Nike bought RTFKT in 2021 to expand its presence in Web3 and to push innovation in sports fashion. After the acquisition, RTFKT built a large online following, with close to 400,000 followers on X.

The studio became known for digital drops, including the “MNLTH” NFT, which revealed a pair of digital Nike Dunk sneakers. Many RTFKT drops were linked to physical products and featured collaborations with brands and artists, such as luxury luggage maker RIMOWA and artist Takashi Murakami.

The Nike case is part of a broader trend of legal action tied to NFTs. Last year, Dolce & Gabbana was sued after a client claimed a significant drop in the value of purchased NFTs. The lawsuit cited delivery delays and restricted platform access as reasons for a reported 97% loss in value.