Source: Dimitrios Kambouris / Getty
Late last year, the sneaker world was shocked to learn that Social Status owner, James Whitner, was under investigation for reselling sneakers from his own clothing store to Chinese nationals. Now, it seems like Whitner is ready to take a massive loss in the ongoing back-and-forth with authorities.
According to Nice Kicks, Whitner is readying to forfeit up to $1.2 million dollars that was federally seized during the investigation after failing to file a claim for the money before the deadline of Sept. 20. After having previously asked for four extensions in the civil forfeiture, it seems like Whitner is ready to cut his losses and move forward however he feels is best for himself and his business.
Per Nice Kicks:
The focal point of the forfeiture action is $1,199,530 in cash seized from the apartment of Whitner’s close associate, Antwain Freeman, in August 2021. Prosecutors assert that this money was linked to an “unlicensed money transmitting business involving Chinese money couriers,” implicating Whitner, Freeman, and others.
The Whitaker Group issued a statement (located in full below) denying the allegations, emphasizing their commitment to legal compliance and transparency in inventory management. It also highlights the collaboration with Nike, a major partner headquartered in Oregon, and asserts that the allegations are baseless and unrelated to their business or community.
While Whitner and his partners are still under investigation for selling millions of dollars worth of sneakers to Chinese buyers in an apparent money laundering scheme, the Social Status owner feels he’ll ultimately be vindicated once all the facts come out in a court of law as he feels politics are at play here and he’s done nothing wrong.
We disagree with the USAO’s allegations concerning our business and remain appreciative of the extraordinary support our vendor partners have shown and continue to show throughout this process. Our success has made us an easy target caught in the middle of a U.S. financial and regulatory war with China of which we have no part in.
We look forward to defending our business and operating model while continuing to proudly serve the communities that have embraced us over the last 20 years. This complaint will not deter us from continuing to tell our stories and build a legacy of excellence and we will continue to vigorously defend our business and all that they contribute to culture, commerce and the community.
Well, he’s definitely got his work cut out for him. When the U.S. government comes for your business, it’s going to get complicated and ugly.
What do y’all think of James Whitner maintaining his innocence in all of this? Let us know in the comments section below.
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