It was a very original idea on the surface. Juicy Fields, a cannabis “investment” platform, supposedly connected micro investors with small cannabis farmers to “fund” crop cultivation that was then legitimately sold. The platform promised investors that they would receive returns as high as 66% within 90 days of their investment. What’s more, investors could also deposit as much as 180.000 euros through bank transfer and crypto investment on the platform. These are both standard procedures in reputable fintech apps and reputable banks.

Juicy Fields, whether you believe it or not, was big in Spain and Latin America for about 18 months. They also poured sponsorship money into respectable gatherings and festivals across Europe over the past year. They opened their offices in Holland as well as Germany.

Anyone with a banking, finance, or legal background—beyond those in the industry who know where legal cannabis comes from—were suspicious right from the start. Juicy Fields proved to be a smart company. In 2021, it made its presence known in a number of highly efficient ways, especially in Europe. The opportunity to make friends and have fun, as well as the possibility of making money, was attractive after the pandemic.

If it sounds too good to be true, that’s because it was.

On Monday, July 11, the remaining workers of company went on strike. Investors were prevented from recovering their funds by the company, who then frozen cash withdrawals. Many investors had initially invested very little and then saw some returns. After that, they were able to invest larger amounts. The funds are now gone, possibly forever. Many investors claimed that they used loans to pay for their Juicy investments.

The company’s top executives have been disappearing steadily, even deleting their online profiles. By Wednesday, the company’s extensive cyber network infrastructure was shut down. However, videos were removed from social media. But headlines and promises are still there.

Scam

While the promotional videos have been mostly removed from the internet, Juicy’s mantra is still online. “Grow cannabis. It is profitable!” was their favorite tagline.

Being a potpreneur was not easy.

In fact, the big Italian-Russian-Columbian “family” behind it all was only interested in one thing. Collecting investors’ cash. Juicy Fields claimed to invest in legal cannabis cultivation—although several industry watchdog groups and consultants found little evidence of the same. Strategically, the company tried to link up with other reputable and established companies in the sector (even though they have distanced themselves from Juicy Fields).

Cyprus was the listing of the bank account. This was no more than a “strategic decision” according to the communications director Zvevda Lauric in May, which “has nothing to do with it being a tax haven.” Lauric has also subsequently left the company.

Although there were many questions and rumors about the subject, nobody had any clear answers.

The fraud was unravelling before the end of July. It began after the lavish, Juicy-funded show at a Barcelona industry event this spring. Two Lamborghinis were parked outside the lavish party with the motto “Foster the Future.” Attendees found themselves in a lavish fantasyland with good food and alcohol that flowed freely, with models dressed as blue fairies and blond, wispy hostesses decorating the background. While it was pretty, it didn’t inspire much confidence in the fact that everything was healthy.

At least in Spain, local media began reporting that the company had violated Spanish securities law. BaFin, the German financial regulator posted on its website a notice on March 30, warning that no prospectus had been published by the company, which is necessary for any type of security sale. German sales were stopped as a result.

The kitchen had become unbearably hot by the end of May and Alan Glanse was forced to resign. He began to publicly blame several Russian citizens for the growing problems in the company, and further denied any responsibility. This is a theme which others, still associated with the company at least on their website, have echoed over the past days—including claiming that they themselves were swindled.

However, their house of cards has fallen apart. The implosion of the scam has affected literally tens of thousands of investors in Spain, Germany, the U.K., the Netherlands, France, Columbia, and the U.S.—all of whom have now had a shattering and disillusioning experience with the wild and crazy world of legalizing cannabis. The story has received increasing coverage from Spanish media. It is being called the biggest crypto-scam in Spanish history.

An absence of accountability

The cannabis press remained silent, with the exception of Eldiaro.es. Public statements were not allowed. The company seemed to be too rich. Multi-million dollar deals were announced by established cannabis companies including a German distributor with the company as recently as this spring.

It is, however, over.

However, it is unlikely that this will ever happen again. The question really becomes, “When?” There are many people in the industry that don’t want to be identified who discussed the issue privately in January but were silenced by those who were invested in or defended the company.

At Europe’s new “Cannabis Week” now underway in Berlin, sponsorship placards and name tags no longer bear the name of the now-defunct company, although advertising including their name is still spread all over the country.

Many are quick to say, “I told you so.”

Problem is, nobody spoke up soon enough or publicly enough to stop what many consider the first major scam in the legalizing and burgeoning European market.

With all that is happening in Germany right now, it is clear that the enthusiasm for recreational cannabis reform will only grow. As a result, the Juicy Fields scandal may be the first of its kind, but sadly, it won’t be the last.