Europol and its associates have arrested 9 people in conjunction with a cannabis investment scam known as “JuicyFields”.
The suspects used social media to lure investors to their website. There they found information about a “golden opportunity” to invest in the cultivation, harvesting and distribution of cannabis plants to be used for medicinal purposes.
Taken from the JuicyFields website:
Grow cannabis. It’s profitable! Become a potpreneur and benefit from the booming cannabis industry. Be among the first to join the movement.
The scheme looked like a crowdsourcing scheme with a minimal investment of € 50, and played on recent discussions in Europe to liberalize cannabis laws following the example of the United States and Canada. Many European countries such as the Netherlands, Austria, Germany, and Portugal have decriminalized possession of cannabis.
As we often see with these kinds of changes in regulatory frameworks, cybercriminals are the first to spot a window of opportunity and advertise with investment opportunities, promising a high return on low-risk investments.
From a JuicyFields whitepaper:
“21 states in the US have already legalised the adult use of marijuana for recreational purposes and this number continues to grow. Indeed, the U.S., Canada, and the soon-to-be regulated markets of the European Union are spearheading this revolution with unprecedented swiftness. However, the pent-up-demand for such regulationdoesn’t necessarily translate into effective deployment.”
To be one of the first investors in this growth market might have seemed just the thing to invest in for some. The scammers promised to connect investors with producers of medical cannabis. Europol stated:
“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. While the company pledged annual returns of 100 percent or more, they did not reveal exactly how they would accomplish this, let alone be able to guarantee it.”
The scheme was set up as a Ponzi scheme, which means the scammers paid early investors their return with the money they received from later adaptors.
So, for example, the first-time investor would deposit € 50 and receive a pay-out doubling their money soon after. Motivated by such quick financial gains, many investors would raise the stakes and invest hundreds, thousands, or in many cases even tens of thousands of euros. But that doesn’t mean the scammers forget to pocket the largest part themselves.
During the investigation and on action day, law enforcement seized or froze € 4,700,000 in bank accounts, € 1,515,000 in cryptocurrencies, € 106,000 in cash and € 2,600,000 in real estate assets, which amounts to roughly $ 9.5 Million in total. This came from 186,000 people who transferred funds into the scheme between early 2020 to July 2022.
One of the primary targets in this investigation was a Russian national residing in the Dominican Republic, suspected to be one of the main organizers of the fraudulent scheme.
Don’t fall for scams
Stick with safe investments, it’s easier said than done. But there are a few things you might want to avoid:
- Rushing into an investment. Scammers want you to act urgently, so you spend less time thinking.
- Skipping the fine print. Not knowing what it says in the fine print can turn out to be catastrophic.
- Acting on cold calls. Treat calls, texts, mails, and other advice out the blue with extreme caution.
- Judging a book by its cover. Investment scams are profitable and they can afford to look good.
Still not convinced? I have this piece of land on Venus, that I would be willing to part with for the right price. But you will need to act fast.
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