Shoes are supposed to be for fun-sies, but the world of underground sneaker buying is vast and intense. Sneakerheads seek out rare and limited edition kicks, and the retailers who sell them rake in massive amounts of cash peddling the wares, even if they’re questionably sourced. At the end of the day, it seems that no one dealing in the sneaker underbelly really cares how a seller comes by the shoes, as long as they’re real.
Queue Zedah Kicks, an infamous sneaker slinger who became popular for selling unattainable editions for well below market value. It seemed too good to be true: unreleased sneakers for less than they would sell from Nike, before Nike even released them. And it turns out that any skepticism was well-founded — after a decade of success, Zedah Kicks is being investigated as a Ponzi scheme.
Bloomberg reports that Michael Malekzadeh is being charged by federal authorities with wire fraud, conspiracy to commit bank fraud, and money laundering. If he’s found guilty, he could face up to 30 years in prison. Malekzadeh plans to plead not guilty with his attorney, Joanna Perini-Abbott saying, “Mr. Malekzadeh is not hiding from his conduct. He has consistently taken full responsibility for his actions and will continue to do so.”
Part of how Zadeh Kicks got so big is that the trickle-down economics of sneaker buying runs deep. Buyers aren’t just looking to find their dream sneaker; they’re often looking to re-sell, while sometimes placing orders in…
