Europol closes on multi-country €645M cannabis scam • Illinois’ cannabis giants help lead a push against intoxicating hemp products • & more …

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Back in 2022, word started to spread that a company called Juice Fields was a major scam. The company was a sort of crowdfunding platform where anyone could invest as little as €50 into cannabis cultivators around the world. But that year, it abruptly shut users out, raising questions about who, exactly, was behind it, how many people invested, and how much money the company got away with.

Now, for the first time, the scale of the scam has come into view following a significant international enforcement effort led by Europol and Eurojust.

Europol announced late last week that “over 400 law enforcement officers in 11 countries executed 9 arrest warrants and conducted 38 house searches” during an “action day” on April 11. They seized and froze “EUR 4 700 000 in bank accounts, EUR 1 515 000 in cryptocurrencies, EUR 106 000 in cash and EUR 2 600 000 in real estate assets,” as well as “several luxury vehicles, works of art, cash and various luxury items.”

The scale of “damages” from the scam? A “staggering EUR 645 million,” according to Europol, though, they note it is likely higher. The number of registered investors was 550,000 but “around 186 000 participants actually transferred funds into the elaborate Ponzi scheme active from early 2020 to July 2022.”

The company “feigned credibility,” Europol said, “as it was not only represented in the digital world, but upheld the image of a trustworthy legal business structure with physical offices, staff and representation at cannabis industry events.”

Last week, the Cannabis Business Association of Illinois, which counts among its members multistate operators like Acreage, Curaleaf, Cresco, and Columbia Care, announced their backing of SB 3926, the Hemp Consumer Products Act, sponsored by Sen. Maj. Ldr. Kimberly Lightford. 

The bill would establish new regulations for hemp-derived cannabinoid products and would ban products containing delta-8 THC or other synthetically-produced cannabinoids.

The Association characterizes the legislation as an effort to “protect children and consumers of all ages, while also ensuring the state’s cannabis industry is no longer undermined by stores selling similar products without proper oversight.”

The Marijuana Enforcement Division (Division) released a notice to licensees about “chemically derived THC.” 

Specifically, the notice aimed to “to set clear expectations” when it comes to hemp-derived products.

“The Division is investigating numerous allegations regarding hemp-derived cannabinoids such as CBDbeing converted into THC concentrate, such as distillate or isolate, to be used in the manufacture ofRegulated Marijuana Products,” MED wrote. 

If MED finds that a licensee is using “chemically converted THC” in products, it will drop a “significant” fine and recommend that the license be suspended and revoked. It could also lead to a broader embargo and destruction of that licensees’ products. 

The reason, MED wrote, is concern for public health, noting that they are “collaborating with sister agencies and law enforcement to ensure that converted THC does not create public health and safety harms in Colorado’s regulated marijuana market.”