NIKE, a famous brand for sportswear, faces a collective suit for the process of running a “carpet withdraw” by turning off its RTFKT NFT platform. A group of investors filed a lawsuit in the Brokelin Federal Court, claiming that the closure of NFT led to significant financial losses.
It is worth noting that the lawsuit claims that the giant of the sportswear has described the unable to be the non -possible symbols with the title of NFTS to win investors and suddenly close the platform, causing damage exceeding $ 5 million.
Nike faces a case of $ 5 million: What happens?
A group of investors RTFKT NFT filed a lawsuit against the sportswear giant, Nike, allegedly carrying out a “soft carpet withdrawal”, causing millions of losses. According to what was reported, NIKE used its reputation to noise NFTS connected to the fashion and digital technology platform, RTFKT. Next, NIKE closed the RTFKT platform, causing decreased digital holdings in value and leaving investors with great losses.
Moreover, prosecutors claimed that they bought NFTS expecting their future growth as it was related to the popularity of the sportswear company. “Since Nike NFTS has derived its value from the success of a promoter and a specific project – here, Nike and its marketing efforts – bought investors this digital asset in the hope that its value in the future will increase with the growth of the project in popularity based on the Nike brand”, as the lawsuit claimed.
This development comes amid an increased expectation of rapid work in the long lawsuit XRP.
Is RTFKT Nfts Securities?
Moreover, Nike’s claim that RTFKT Nfts is “unregistered securities”. Nicely, Nike is accused of violating American law by selling unregistered securities in the form of NFTS, and organizing them with marketing, only to withdraw the plug after profit.
Prosecutors ask $ 5 million of damage, on the pretext that the giant of sportswear has violated consumer protection laws and other unfair laws for trade and competition.
Although the American court has not yet classified NFTS as securities, discussions are continuing in this industry. On April 9, 2025, Opeasea from the United States SEC requested the exclusion of NFTS from federal securities laws. Their argument depends on the fact that NFTS does not meet the legal definition of safety. However, in the Nike suit, the separation group said the court does not need to determine the legal status of NFTS to solve the complaint.
Recently, the US Securities and Stock Exchange Committee has shared renewed instructions on classifying digital assets as securities.
Nino against Jamal
NYNU V Jamal is an emotional encryption journalist with three years of experience in Blockchain, Web3 and Fintech balls. She has created herself as an attractive and attractive voice in the coded currency and blocks. She added her experience as an assistant professor in English and literature to her endeavor to formulate well and accessible media content.
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