Nike Sues NFT Sneaker Reseller | 2.10.22

GM Ser,

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Nike Sues NFT Sneaker Reseller

In a world where web3 and NFTs are on the cusp of everything, it seems many are still confused at the laws regulating it all. 

Nike included. They are currently suing StockX, an online marketplace that resells clothes and accessories. Last month, they introduced their NFTs as also having physical goods potential, launching their “Vault NFTs” collection. These items can be redeemed for either physical or digital items. 

Included in the Vault NFTs collection are Nike shoes, which seem to pose a problem for Nike as they didn’t sign off on this collaboration and cites the NFTs as “trademark infringement, false designation of origin, and trademark dilution, among other violations.”

The issue lies in whether StockX can sell these NFTs as their own goods, or whether they're indeed in violation of Nike copyright. 

In a statement Nike said, “StockX almost exclusively used Nike’s marks to launch its Vault NFTs because it knew that doing so would garner attention, drive sales, and confuse consumers into believing that Nike collaborated with StockX on the Vault NFTs… StockX is using Nike’s trademarks to market, promote, and attract potential purchasers.”  

StockX did not comment on the issues.

This isn’t the first time Nike has had to deal with other marketplaces selling off digital Nike goods without their permission. It’s clear the sporting goods giant intends to get into NFTs, but on their own terms. 

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Crypto's Bonnie and Clyde Arrested by DOJ

Husband and wife crypto-con team Heather Morgan and Ilya Lichtenstein have been arrested in an attempt to launder $4.5 billion worth of crypto. 

What is puzzling is how the OpenSea accounts of both have disappeared. According to documents from the Department of Justice, Morgan and Lichtenstein have been at this since 2016, attempting to launder stolen crypto from a Bitfinex hack. 

The couple “engaged in a diverse array of virtual currency transactions, including transacting in numerous altcoins, liquidating BTC through a BTC ATM, and purchasing non-fungible tokens (NFTs),” according to the DOJ. 

Due to Morgan’s social media presence, her OpenSea account was able to be identified along with Lichtenstein’s.

Morgan was visibly more active on OpenSea than her counterpart and even minted and sold her own album covers as NFTs. Apparently she would transfer monies to Wrapped Ether, Gemini, and USDT from her Ether wallet. 

However, now that they’ve been arrested, the marketplace pages are no longer live and instead pull up a 404 error page. 

Purchaser of a Morgan album cover NFT tweeted that OpenSea had taken down the image and the metadata for the NFT, essentially making the purchase worthless.

Buzzfeed didn’t hear from OpenSea or the couple and the DOJ declined to comment.  

OnlyFans Introduces NFTs

As the buzz of NFTs and PFPs circle social media, OnlyFans too, is joining in on the hype.

Now creators will have the opportunity to link their own NFTs as their profile pictures. CEO Amrapali Gan said "Our mission is to empower creators to own their full potential. This feature is the first step in exploring the role that NFTs can play on our platform."