Source: Nike / NIke
A few weeks ago now infamous sneaker reseller Michael Malekzadeh a.k.a Zadeh Kicks was charged with wire fraud, conspiracy to commit bank fraud, and money laundering after jerking many sneakerheads out of millions of dollars. Now his own personal collection is up for auction courtesy of the U.S. Government.
According to Fortune, more than 60,000 pairs of sneakers that Malekzadeh held at a warehouse have hit the auction block in an attempt to recoup some of the $70 million that the reseller had swindled out of countless customers who pre-ordered sneakers that he couldn’t have possibly obtained. Of the tens of thousands of sneakers that the government is reselling (LOL), 1,100 pairs are from Malekzadeh’s own personal collection and have an estimated worth of $15-$20 million on the secondary market.
As for what kicks you can expect to see hit the auction block there are 4,746 Yeezys, 4,626 Adidas shoes, and 48,339 Nike shoes which include a gang of Air Jordan’s that you know will fetch a pretty penny.
Naturally, that isn’t nearly enough to payback Malekzadeh’s pissed off customers, but at least some of them will be able to get their money back. Others meanwhile will have to take a steaming hot “L” worth thousands of dollars that they invested in Malekzadeh’s business.
For those who aren’t familiar with Zadeh Kicks, it was a sneaker reselling business that Michael Malekzadeh founded back in 2013. It wasn’t long before Malekzadeh began taking pre-orders for sneakers that hadn’t released yet and though many would get the sneakers that they reserved, a lot of customers would get them weeks or even months after the release date. For those who didn’t get their kicks, Malekzadeh would offer them store credit as a way to square things with his customers.
But this past May Malekzadeh shocked everyone when he dissolved his Zadeh Kicks LLC and blew town with more than $70 million in his back pocket and leaving hundreds of customers without their pre-ordered sneakers and no way to recoup their money. Some even took to social media to reveal they spent tens of thousands on pre-orders with nothing to show for it. Eventually, the feds caught wind of the move and have since hit him with all kinds of fraud charges, though we’re sure his customers would rather have their money or sneakers than see him locked up for a few years. That’s just how us sneakerheads feel anyway.
Of course, Malekzadeh pleaded not guilty but things aren’t looking good for the man dubbed the “Bernie Madoff” of the sneaker game.
But now comes the task of offloading the excess stock from the dissolved company.
David Stapleton, the court-appointed receiver, is considering selling off the inventory in bulk or unloading them through various resale platforms.
Malekzadeh’s personal shoe collection is meant to “test the market” on how the shoes can be sold off best.
Having the U.S. Government make an account on GOAT or StockX was not on our 2022 Bingo card, but here we are.
