Nike is confronted with a class action lawsuit in connection with the closure of his crypto business RTFKT. The plaintiffs: In this case, the sporting goods manufacturer accused them of leaving them with considerable losses after the closure of the platform led to a decline in demand for their non-fungable tokens (NFTS).
The class action was submitted to the Eastern District of New York and is led by Jagdeep Chemema based in Australia, which, according to Reuters, demands an unadorned amount of compensation of more than five million US dollars. According to the plaintiff: Inside, they would never have bought the NFTS of RTFKT if they knew that it was “non -registered securities”, and that Nike would “pull the ground out under their feet”.
Nike had acquired the virtual sneaker and fashion platform RTFKT in December 2021 as part of a more comprehensive digital transformation at a time when NFTs culminated in popularity. RTFKT was founded in 2020 and reported a total turnover of $ 49.82 million just two years after its foundation and reportedly sold virtual sneakers worth around 3.1 million US dollars at its climax.
However, Nike hired the business only three years later, since interest in digital assets decreased and the sports brand shifted its focus on product innovations and wholesale relationships. At the time, the company confirmed that the platform would serve as a “symbol of a cultural revolution” despite its closure.
Fashionunited asked Nike for a comment.
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