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A few weeks ago, famous sneaker dealer Michael Malekzadeh aka Zadeh Kicks was charged with wire fraud, conspiracy to commit bank fraud and money laundering after shooting numerous sneakerheads out of millions of dollars . Now his own personal collection is being auctioned courtesy of the US government.
According Fortune, more than 60,000 pairs of sneakers held by Malekzadeh in a warehouse have been auctioned off in a bid to recoup some of the $70 million the retailer had swindled from countless customers who had pre-ordered sneakers he didn’t. couldn’t have gotten . Of the tens of thousands of sneakers the government is reselling (LOL), 1,100 pairs are from Malekzadeh’s personal collection and have an estimated value of $15-20 million on the secondary market.
As for the kicks you can expect to see at auction, there are 4,746 Yeezys, 4,626 Adidas shoes and 48,339 Nike shoes, including a strip of Air Jordans that you know will fetch a nice penny.
Naturally, that’s not enough to reimburse Malekzadeh’s pissed off customers, but at least some of them will be able to get their money back. Meanwhile, others will have to take a burning “L” worth the thousands of dollars they’ve invested in Malekzadeh’s business.
For those unfamiliar with Zadeh Kicks, it was a sneaker resale business that Michael Malekzadeh founded in 2013. It wasn’t long before Malekzadeh started taking pre-orders for sneakers that hadn’t been released yet and although many would get the sneakers they reserved, many customers received them weeks or even months after the release date. For those who didn’t get their kicks, Malekzadeh offered store credit as a way to settle things with his customers.
But last May, Malekzadeh shocked everyone when he dissolved his company Zadeh Kicks LLC and blew up town with over $70 million in his back pocket, leaving hundreds of customers without their pre-ordered sneakers. and with no way to get their money back. Some have even taken to social media to reveal they’ve spent tens of thousands of dollars on pre-orders with nothing to show for it. Eventually, feds caught wind of the decision and have since charged him with all sorts of fraud charges, though we’re sure his clients would rather have their money or their sneakers than see him locked up for a few years. . That’s exactly how we sneakerheads feel anyway.
Sure, Malekzadeh has 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 excess inventory from the dissolved company.
David Stapleton, the court-appointed receiver, plans to sell the inventory in bulk or offload it through various resale platforms.
Malekzadeh’s personal shoe collection is meant to “test the market” on how best to sell shoes.
Whether the US government creates an account on GOAT or StockX wasn’t on our 2022 bingo card, but here we are.