Nike Accused of Rug Pull Over Failed RTFKT NFT Project
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 to believe the tokens will gain value over time. Investors say they purchased the NFTs with the expectation that their value would grow alongside the popularity of Nike's brand.
The group is seeking $5 million in damages, due to violations of consumer protection laws and unfair competition laws. While a US court still has to definitively determine whether NFTs are securities, the plaintiffs argue that the court does not need to make that decision in order to address their complaint.
Nike acquired RTFKT Studios in 2021, a company known for creating digital sneakers and collectibles. The complaint explained that NFT holders were promised the ability to trade their tokens on secondary markets and participate in challenges and quests that could offer additional rewards. At the height of the hype, Nike’s crypto kick NFTs were trading for an average of 3.5 Ether (about $8,000) when first listed in April of 2022. However, by April of 2025, their average price had dropped dramatically to around 0.009 Ether (roughly $16), according to OpenSea data.
RTFKT NFTs drop in price over time (Source: OpenSea)
The abrupt closure of RTFKT not only slashed the NFTs' value but also eliminated the challenges and rewards opportunities that many investors considered a key part of the purchase. This collapse came in the middle of the broader decline in the NFT market, which saw total sales fall 63% year-over-year in the first quarter of 2025.
So far, Nike has not yet publicly commented on the lawsuit.
Bitget Sends Legal Letters After VOXEL Manipulation
Bitget is currently involved in its own legal battle. The cryptocurrency exchange announced that it is sending legal letters to eight account holders accused of manipulating the price of the VOXEL/USDT perpetual futures contract on April 20.
According to Xie Jiayin, Bitget’s head of Chinese operations, the accused traders allegedly gained more than $20 million from the incident and will soon receive letters from the exchange’s legal team. Jiayin clarified that other users who participated in VOXEL trading and withdrew their funds should not worry, as their accounts have been restored and no further action will be taken against them.
On April 20, Bitget discovered what it called “abnormal trading activity” on the VOXEL/USDT trading pair, which led the exchange to suspend affected accounts. The trading volume for the pair surpassed $12 billion, which was much higher than the volumes seen on rival exchanges like Binance. In response, Bitget rolled back the irregular trades to recover the ill-gotten gains. CEO Gracy Chen said that the incident was limited to trades between individual users, and that the platform itself, along with general user funds, remained safe.
While a full investigation is still ongoing, Bitget said that it plans to return 100% of the recovered funds to affected users through airdrops. Some users speculated that a bug in a market maker bot may have caused the excessive trading volume, allowing early observers to exploit the situation with high-leverage bets at little to no cost.
(Source: X)
The Bitget incident is very similar to an event that took place on decentralized exchange Hyperliquid in March, where a whale allegedly manipulated liquidation parameters to profit $6.26 million on the JELLY meme coin. Hyperliquid responded by delisting JELLY perpetual futures after finding evidence of suspicious market activity.
Nigeria Approves Arrests Over CBEX Crypto Fraud
In Nigeria, an Abuja Federal High Court reportedly granted Nigeria’s Economic and Financial Crimes Commission (EFCC) the authority to arrest six people accused of committing investment fraud through the cryptocurrency platform Crypto Bridge Exchange (CBEX).
According to a report from The Cable on April 24, the six suspects, operating through ST Technologies International Limited, allegedly promoted CBEX and lured investors into placing funds on the platform, ultimately defrauding them of approximately 1 billion naira, or $620,000. At the time of writing, the individuals were not arrested yet.
Part of the report from The Cable
The case is part of a broader crackdown on cryptocurrency activities in Nigeria. Earlier in 2024, authorities arrested two Binance executives who traveled to Nigeria to discuss the platform’s operations.
Meanwhile, complaints against CBEX escalated in April when users began reporting that they could no longer withdraw their funds. The outrage culminated in a physical attack on CBEX’s office in Ibadan, where angry investors reportedly looted items, including an air conditioning unit, in a desperate attempt to recover their losses.
Tigran Gambaryan
Nigeria’s case against Binance is also still ongoing. Tigran Gambaryan, a US citizen and Binance executive, was detained for eight months on tax and money laundering charges before being released into US custody. Despite Gambaryan’s release, Nigeria’s tax evasion proceedings against Binance continue, even though the exchange does not actually have a physical office in the country. Nigeria’s Ministry of Information has not made any comments about the situation.
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Nike Accused of Rug Pull Over Failed RTFKT NFT Project
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 to believe the tokens will gain value over time. Investors say they purchased the NFTs with the expectation that their value would grow alongside the popularity of Nike's brand.
The group is seeking $5 million in damages, due to violations of consumer protection laws and unfair competition laws. While a US court still has to definitively determine whether NFTs are securities, the plaintiffs argue that the court does not need to make that decision in order to address their complaint.
Nike acquired RTFKT Studios in 2021, a company known for creating digital sneakers and collectibles. The complaint explained that NFT holders were promised the ability to trade their tokens on secondary markets and participate in challenges and quests that could offer additional rewards. At the height of the hype, Nike’s crypto kick NFTs were trading for an average of 3.5 Ether (about $8,000) when first listed in April of 2022. However, by April of 2025, their average price had dropped dramatically to around 0.009 Ether (roughly $16), according to OpenSea data.
RTFKT NFTs drop in price over time (Source: OpenSea)
The abrupt closure of RTFKT not only slashed the NFTs' value but also eliminated the challenges and rewards opportunities that many investors considered a key part of the purchase. This collapse came in the middle of the broader decline in the NFT market, which saw total sales fall 63% year-over-year in the first quarter of 2025.
So far, Nike has not yet publicly commented on the lawsuit.
Bitget Sends Legal Letters After VOXEL Manipulation
Bitget is currently involved in its own legal battle. The cryptocurrency exchange announced that it is sending legal letters to eight account holders accused of manipulating the price of the VOXEL/USDT perpetual futures contract on April 20.
According to Xie Jiayin, Bitget’s head of Chinese operations, the accused traders allegedly gained more than $20 million from the incident and will soon receive letters from the exchange’s legal team. Jiayin clarified that other users who participated in VOXEL trading and withdrew their funds should not worry, as their accounts have been restored and no further action will be taken against them.
On April 20, Bitget discovered what it called “abnormal trading activity” on the VOXEL/USDT trading pair, which led the exchange to suspend affected accounts. The trading volume for the pair surpassed $12 billion, which was much higher than the volumes seen on rival exchanges like Binance. In response, Bitget rolled back the irregular trades to recover the ill-gotten gains. CEO Gracy Chen said that the incident was limited to trades between individual users, and that the platform itself, along with general user funds, remained safe.
While a full investigation is still ongoing, Bitget said that it plans to return 100% of the recovered funds to affected users through airdrops. Some users speculated that a bug in a market maker bot may have caused the excessive trading volume, allowing early observers to exploit the situation with high-leverage bets at little to no cost.
(Source: X)
The Bitget incident is very similar to an event that took place on decentralized exchange Hyperliquid in March, where a whale allegedly manipulated liquidation parameters to profit $6.26 million on the JELLY meme coin. Hyperliquid responded by delisting JELLY perpetual futures after finding evidence of suspicious market activity.
Nigeria Approves Arrests Over CBEX Crypto Fraud
In Nigeria, an Abuja Federal High Court reportedly granted Nigeria’s Economic and Financial Crimes Commission (EFCC) the authority to arrest six people accused of committing investment fraud through the cryptocurrency platform Crypto Bridge Exchange (CBEX).
According to a report from The Cable on April 24, the six suspects, operating through ST Technologies International Limited, allegedly promoted CBEX and lured investors into placing funds on the platform, ultimately defrauding them of approximately 1 billion naira, or $620,000. At the time of writing, the individuals were not arrested yet.
Part of the report from The Cable
The case is part of a broader crackdown on cryptocurrency activities in Nigeria. Earlier in 2024, authorities arrested two Binance executives who traveled to Nigeria to discuss the platform’s operations.
Meanwhile, complaints against CBEX escalated in April when users began reporting that they could no longer withdraw their funds. The outrage culminated in a physical attack on CBEX’s office in Ibadan, where angry investors reportedly looted items, including an air conditioning unit, in a desperate attempt to recover their losses.
Tigran Gambaryan
Nigeria’s case against Binance is also still ongoing. Tigran Gambaryan, a US citizen and Binance executive, was detained for eight months on tax and money laundering charges before being released into US custody. Despite Gambaryan’s release, Nigeria’s tax evasion proceedings against Binance continue, even though the exchange does not actually have a physical office in the country. Nigeria’s Ministry of Information has not made any comments about the situation.
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