A massive medical cannabis Ponzi scheme was dismantled in Europe on Thursday.
A joint investigation by EU law enforcement authorities, backed by Eurojust and Europol resulted in the arrest of 9 suspects of Russian, Dutch, German, Italian, Latvian, Maltese, Polish, Jordanian, US and Venezuelan nationality following the so-called "JuicyFields" investment fraud case.
The massive April 11 bust included the collaboration of 400 law enforcement officers across 11 countries.
The two linked criminal organizations behind the online advertisement scheme laundered profits that totaled roughly EUR 645 million ($692.2 million), per judicial estimates al although Europol said "actual and unreported damages could be significantly higher."
The move comes shortly after Germany legalized recreational cannabis, a topic that will surely be discussed at the upcoming Benzinga Cannabis Capital Conference which returns to Florida on April 16 and 17.
See also: JuicyFields Ponzi Scheme: Attorney For 800 Plaintiffs Goes After Facebook, Forbes, Google, YouTube
It is estimated that 550,000 participants worldwide, mostly European citizens, were registered as online investors. As part of the Ponzi scheme, active from early 2020 to July 2022, approximately 186,000 participants transferred funds.
The suspects lured victims on their websites by advertising on social networks.
"These platforms offered promising crowdsourcing investment opportunities in the cultivation, harvesting and distribution of cannabis plants to be used for medicinal purposes," Europol said in a press release.
All participants had to do was invest a minimum of EUR 50 in this so-called ‘e-growing' opportunity that was promised to yield returns of at least 100% annually.
"Upon the purchase of a cannabis plant, the platform assured investors – also referred to as e-growers – they could soon collect high profits from the sale of marijuana to authorized buyers," Europol explained.
Now read: SEC Shuts Down WeedGenics $60M Cannabis Offering Fraud
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!
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The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!