Russian National Arrested in Multi-Billion Dollar Cannabis Ponzi Scheme
Law enforcement authorities have detained a Russian national identified as one of the creators of the infamous multi-billion dollar cannabis Ponzi scheme, JuicyFields, which collapsed in 2022.
Fraudsters Behind the Cannabis Business Arrested
On April 11, more than 400 law enforcement officers from 11 countries, supported by Europol and Eurojust, conducted raids, searching 38 properties and arresting nine suspects for fraud. Among those detained was a Russian citizen whose name has not yet been disclosed.
Authorities seized €106,000 (10.6 million rubles) in cash and €1.5 million (149.4 million rubles) in cryptocurrency from the suspects. Additionally, €4.7 million (468 million rubles) was confiscated from bank accounts, along with real estate worth €2.6 million (258.9 million rubles), luxury cars, artwork, and electronics.
Investigation Led to the Capture of the Organizers
The capture of the fraudsters was made possible by a thorough investigation into JuicyFields’ operations. Police have not disclosed many details but reported that the criminals were identified through digital evidence. The Russian national, considered one of the main organizers, was arrested in the Dominican Republic, tracked down through property he owns there on the island of Hispaniola.
Investors in Cannabis Production Suffered Massive Losses
JuicyFields launched in 2020, offering people the chance to invest in cannabis cultivation by purchasing virtual cannabis plants priced from €50 to €2,000 (4,980 to 199,180 rubles). After harvest, plant owners could sell the cannabis and earn a profit of at least 27% annually.
In July 2022, JuicyFields stopped paying dividends to its clients, and the startup’s leaders disappeared. According to police, the founders of the Ponzi scheme managed to make at least €645 million (64.2 billion rubles), defrauding 186,000 people. However, independent researchers believe that up to 500,000 people from Russia, Belgium, the USA, Luxembourg, and many other countries fell victim to the scam. Since its launch, JuicyFields reportedly received cryptocurrency investments totaling €5 billion (498 billion rubles).
Key Figures and Possible Arrests
JuicyFields co-founder Alan Glanz, who lives in the USA, claimed that the company was owned by Russian citizens Pavel Bergoltz, Alexander Weimer, and Vasily Kandinsky. According to released documents, these individuals held shares in JuicyFields. It is therefore possible that one of these men was the person arrested in the Dominican Republic.