A dramatic incident unfolded on Thursday, October 2, 2025, that shocked the sneaker community. Adeel Shams was hosting a live online auction on a platform called "Whatnot" when the Los Angeles Police Department (LAPD) suddenly raided the warehouse.
The livestream viewers saw the auction abruptly stop as police officers entered the building. Adeel Shams was arrested during the raid. He was taken into custody by the LAPD’s BUNCO/Forgery Division, which is a special unit that handles financial crimes like fraud and counterfeit goods.
Official records show he was booked on felony charges related to alleged fraud.
Shams was released shortly after midnight on Friday, October 3, on his own recognizance (released without having to pay bail). He is scheduled for a court appearance on October 23 at the Los Angeles Superior Court.
The LAPD has not officially released specific details about the charges, but the involvement of the BUNCO/Forgery Division strongly suggests the investigation is centered on fraudulent activity and the sale of counterfeit (fake) merchandise.
However, CoolKicks released an official statement with their side of the story, denying the most serious allegations and maintaining their innocence
“Neither CoolKicks leadership, nor our staff, had any knowledge or reason to believe that these products were stolen. We entered into this purchase in good faith, as we always have, committed to running an honest business built on integrity and trust.”
CoolKicks specifically stated that there were “no allegations that any of the products were counterfeit.”
The company reassured its customers, saying, “We are confident the truth will come out, and the trust we have worked so hard to earn will remain strong.”
CoolKicks is a popular sneaker resale store, famous for its rare shoes and big social media following. The company was founded by Adeel Shams in 2014 in Virginia, before he moved the main store to the famous Melrose Avenue in Los Angeles.