The Los Angeles sneaker community was shaken this week after reports emerged that CoolKicks — one of the most influential names in streetwear culture — was raided by the LAPD, leading to the arrest of its founder Adeel Shams. The operation, conducted by the LAPD’s BUNCO/FORGERY division on October 2, 2025, is part of an ongoing investigation into alleged counterfeit sneaker sales and fraud within the multi-billion-dollar resale industry.
According to Azat TV, the CoolKicks raid took place at the brand’s Los Angeles warehouse, sending shockwaves through sneaker circles and social media platforms. Shams was reportedly taken into custody around 4:45 PM, booked on felony charges, and later released on his own recognizance just after midnight. His next court date is scheduled for October 23, 2025, where he will address the allegations formally.
CoolKicks: From Startup Dream to Global Sneaker Phenomenon
Founded in 2014 by Adeel Shams and friends while studying at Virginia Commonwealth University, CoolKicks began as a small-scale sneaker resale shop. By 2016, it had evolved into a full-fledged cultural landmark after relocating to Los Angeles and opening its flagship store on Melrose Avenue.
The store became famous not only for its rare sneaker collections but also for its massive digital presence. With nearly two million YouTube subscribers, CoolKicks mastered the art of blending entertainment, influencer marketing, and retail. Celebrities, athletes, and YouTubers regularly appeared on the store’s videos, turning its employees into mini-celebrities within sneaker culture.
But as the resale market grew more competitive and volatile, CoolKicks faced mounting challenges. Falling profit margins, unpaid consignor fees, and shifting resale dynamics forced many stores, including CoolKicks, to diversify. They expanded into apparel and began livestreaming sales on platforms like WhatNot, which became a new frontier for sneaker reselling.
The Raid That Stopped Sneaker Culture in Its Tracks
During one such WhatNot livestream on the night of the CoolKicks raid, viewers noticed an abrupt end to the broadcast. Adeel Shams mentioned hearing noises and referenced a possible “swatting” incident before the stream cut out entirely. Moments later, reports of police activity near the CoolKicks warehouse began circulating on X (formerly Twitter), with photos from onlookers confirming the presence of LAPD vehicles.
According to investigators, the raid was part of a larger operation focused on counterfeit goods and fraudulent transactions. While no formal charges of counterfeit distribution have been confirmed, the involvement of the BUNCO/FORGERY division — which specializes in financial and authenticity-related crimes — indicates serious allegations are being explored.
Adeel Shams was released without bail, suggesting that authorities are still compiling evidence before proceeding with further legal action. As of now, no counterfeit products have been publicly confirmed, and both CoolKicks and Shams have yet to issue official statements.
Industry Reaction: Trust and Transparency Under Fire
The news of CoolKicks raided quickly went viral, dividing sneaker enthusiasts. On Reddit and X, users debated whether CoolKicks’ massive resale volume made them vulnerable to sourcing errors, while others speculated about systemic issues within the sneaker resale ecosystem.
“CoolKicks has been the face of sneaker culture for nearly a decade,” wrote one user on r/Sneakers. “If even they’re under investigation, what does that say about the rest of the resale market?”
Industry analysts believe this incident could mark a turning point. The CoolKicks raid has reignited conversations about authenticity, ethics, and the blurred lines between legitimate reselling and counterfeit distribution.
“The resale market exploded faster than its regulations,” said sneaker industry expert David Lopez. “The CoolKicks situation may push authorities to impose stricter oversight on how sneakers are sourced, verified, and sold.”
Adeel Shams and CoolKicks’ Future
For Adeel Shams, who has been celebrated as a young entrepreneur symbolizing the American Dream, the investigation poses a serious challenge. What began as a passion project could now face reputational and financial damage if the allegations gain traction.
CoolKicks’ YouTube and WhatNot accounts remain active but have paused new livestreams following the raid. As fans and customers await clarity, the brand’s future depends on how the legal proceedings unfold in the coming weeks.
Regardless of the outcome, one thing is clear — the CoolKicks raid has exposed the fragility of reputation in the age of digital commerce. For sneakerheads and collectors, it’s a wake-up call about trust, authenticity, and the high stakes of the modern resale game.
Stay updated on breaking startup and streetwear industry stories at StartupNews.fyi.








