For some time, Michael Malekzadeh was a wealthy young man. So Rich: As Bloomberg explains in an article dedicated to this amazing shoe Bernard Madoff, his small company Zadeh Kicks managed to raise tens of millions of dollars, which were spent on Lamborghini, Ferrari or Bentley, with the boy also blasting 3 million dollars in Louis Vuitton or crafting etc. Like her.
Originally from Eugene, Oregon, Malikzadeh was a wizard of collectible sports pumps. For years, his small business has been selling rare pairs at bargain prices, which consumers have been scrambling to acquire.
Since Bernard Madoff’s name has been mentioned, the sequel has been well known: Zade Kix is now described as a long-running Ponzi scheme, massive orders by some to fund big cuts on others’ shoes, so the whole doesn’t fall apart. Like a house of cards.
In the sneaker market, which was worth $70 billion in 2020, Zadeh Kicks has invented a niche for himself and found a slew of customers, happy to get their hands on rarities sold at such low prices.
“In fact, The plaintiffs now explain, Malikzadeh took the orders and raised money for the thousands of sneakers he neither owned nor could afford, at least at prices with no economic benefit.writes Bloomberg.
In short, as always in these flashy schemes, it was too good to be true. Some customers ordered hundreds of pairs of these rare pumps, and then resold them at high market prices. It regularly happened that they received all or part of their order, and the first could sometimes make a big somersault.
The others, on the other hand, victims of the pyramid, received nothing or received only a part of what they were ordered. They were then persuaded with gift certificates, delaying maneuvers and singing promises of tomorrow.
The building was shaking but not yet collapsed. Until the latest release of Nike’s Air Jordan, the XI Low Cool Gray shoe, announced by Nike in December 2021 with a general price of $225. A few weeks before they went on sale, Zadeh Kicks offered the shoes for just $115, with delivery a few weeks after launch.
“Malikzadeh sold 600,000 pairs, and he had 6,000”, says Bloomberg. But while Zadeh Kiks raised up to $70 million, large numbers of deceived clients ended up collapsing the scheme, putting Malekzadeh in a very sensitive position. The company disappeared due to the inability to fulfill the orders that were paid for.
She still had 60,000 pairs of pumps of various makes and models in a closed warehouse in Oregon, where angry customers sometimes gathered to get what they deserved—the police had to intervene several times and a shot was fired during one of those interventions.
Zada Kicks can count on a little rage Sports shoe heads. And so Bloomberg advances the case of Jeremy Rogers, the Texas researcher who ordered the site “100 Pairs Air Jordan 11 Cool Grey, 300 Pairs Air Jordan 4 Retro Lightning, 225 Pairs Jordan 4 Retro Military Black, 100 Pairs Jordan 4 Retro Shimmer, 20 Pairs Travis Scott Jordan 1 High Fragment”. In total, $143,000 was spent, spread across fifteen different credit cards.
He thought that he could then turn these sneakers into fortunes, but in fact he only received a portion of them. Bought for $160, 100 pairs of Jordan Shimmers found takers for $360: This single sale fetched him over 15,000.
This is ultimately not enough to cover his total losses. But this type of deal is speculation of the financial potential exciting enough for buyers to rush into, as well as an attempt to collectively take profits from the record prices of Zadeh Kicks and the madness surrounding collectible soft-soled shoes.
Even more surprising, Bloomberg asserts, is that Zade Kix has been able to operate for such a long time without ever paying for a low-level counterfeit: Those lucky enough to see their honor orders received original sneakers, which have great resale value.
Some suspect that he bought a large portion of the pairs and then resold them on StockX, and others over time created a large network of fellow independent distributors, who could supply him with rare pairs.