Nike faces a $5 million class-action lawsuit in India over its closure of the NFT platform RTFKT earlier this year. The lawsuit alleges that Nike engaged in a rug pull by promoting sneaker-themed NFTs to attract investors and then abruptly shutting down the platform. The plaintiffs claim that they suffered significant damages as a result of Nike’s actions. The lawsuit argues that the NFTs sold by Nike were unregistered securities and accuses the company of using its brand and marketing power to hype up the tokens. The plaintiffs are seeking $5 million in damages for violations of consumer protection and unfair competition laws. Nike acquired RTFKT Studios in 2021, which created virtual sneakers and NFTs. The value of Nike NFTs dropped significantly after the platform’s closure, causing losses for investors. The overall NFT market in India saw a sharp decline in the first quarter of 2025, with total sales plummeting by 63% year-over-year. Nike has not responded to requests for comment on the lawsuit.