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Court documents reveal details about Zappos CEO Tony Hsieh's last moments

Legal battle shines light on former CEO's drug abuse and eccentric business plans
Tony Hsieh.PNG
Posted at 8:46 AM, Nov 18, 2022
and last updated 2022-11-18 11:55:21-05

LAS VEGAS (KTNV) — Newly released court documents shine a light on the events that led up to the house fire that killed Zappos CEO, Tony Hsieh.

Hsieh died in a house fire in Connecticut in November 2020 at the age of 46. Hsieh led Zappos for 20 years as CEO before retiring in August 2020. He played a pivotal role in the revitalization of downtown Las Vegas and had an estimated net worth in the hundreds of millions of dollars.

Documents revealed by the court battle over Hsieh’s estate show a downward spiral of erratic behavior, alleged drug misuse, and bad business deals. He was also reportedly malnourished, barely slept, and was abusing Ketamine and Nitrous Oxide.

In October 2020, Hseih was taken to the emergency room after stating that he believed he was “crystallizing,” documents said. Lawyers also say that Hsieh also believed he was “in a simulation,” and did not know “what’s real and what’s not.” He had also been reportedly “chewing cigarettes.”

Prior to that, lawyers revealed that Tony began to experiment with Ketamine in November 2019, in doses high enough to cause hallucinations. Additionally, Hsieh began using Nitrous Oxide as a replacement for other drugs he was taking.

Nitrous oxide, or whippets, sometimes also called laughing gas, is sold as cartridges that are inhaled. According to friends, Hsieh used “as many as 50 cartridges of nitrous oxide a day, often in public, or during ‘meetings’ with people.”

In the battle for Hsieh’s estate, prosecutors have made multiple claims that Tony was not well enough to participate in business transactions and the creation of contracts.

In a court filing from earlier this year, lawyers for Hsieh’s estate claim “the balance on Tony’s line of credit ballooned to more than $250 million through a series of transactions,” including a $2.2 million attorney fee, a $7.5 million contract for “financial consulting services,” a third contract of $30 million for an unidentified man to “operate a boat bar and ice castle” and the purchase of the Zappos headquarters “for nearly $40 million more than its value.”

A judge would eventually name Tony’s father, Richard Hsieh and brother, Andrew Hsieh as the co-administrators of his estate in the summer of 2020 after Tony resigned from his position in the summer.

The recently filed documents indicate Tony’s brother, Andrew, was attempting to wean his brother off nitrous oxide by controlling his brother’s access as an administrator of his estate.

Documents indicate he and a group of friends traveled to Connecticut around Nov. 1, 2020, which appeared to mark a behavioral change for Tony.

“Over the next 7 days, Tony was able to significantly curb his use of nitrous oxide,” documents said. “He spent his time enjoying food and movies with his companions. His companions describe seeing Tony beginning to smile and laugh again.”

In the weeks before Tony’s death, Andy Hsieh became so concerned about his brother’s health, he asked that “vitamins and protein supplements” be slipped into his food, documents said. Andy Hsieh had been offered a $1 million salary to take care of his brother at the time, previous court records said.

Around 3:30 a.m. on Nov. 18, firefighters were called to the home at 500 Pequot Ave.

Friends told authorities that Hsieh retreated to a shed on the night after a fight with his girlfriend and was using a propane heater to stay warm before the fire that killed him.

According to witness reports, Hsieh was lying in a storage area with a blanket near candles with a propane tank at the time. Lawyers for his estate said Hsieh had a “growing obsession with candles and fire” at the time.

Part of the blanket and a plastic bag had caught fire earlier in the night. Surveillance video shows Hsieh opening the door to the shed as smoke appeared to be coming from it 10 minutes before his friends called 911, the report noted. Videos also showed his friends passing him whippet canisters through the door throughout the night.

Reports say an employee had been checking on Hsieh every 10 minutes, leaving Post-It Notes and knocking on the shed’s door before the fire.

Firefighters said that they had to force their way into the storage area and pull Hsieh out.

Lawsuits relating to Hsieh’s estate have been ongoing since his death. The next court hearing is scheduled for December.