A police raid in Santiago, Chile resulted in the seizure of multiple narcotics as well as the discovery of a Bitcoin mining operation, which local authorities said marked the first time such a glaring link between organized crime and cryptocurrency had been found in Chile.

According to an article in El Mostrador, a Chilean newspaper, the raid in which the mining computers were found was the third in a series of police actions against a drug trafficking group headed by Kevin Piña Catalán. Chilean Police say Piña has been operating as the de facto leader of a group that trafficked cannabis suspected to be purchased from gangs growing it in the Quilimarí Valley; as well as ketamine, cocaine, Ecstasy and other drugs. Police said the group conducted their illegal activities using multiple different houses in the area which is why multiple raids were necessary. 

The mining equipment was found at a raid conducted at a house in the La Cisterna commune of Santiago on September 6 and resulted in the arrest of seven suspects as well as the seizure of 43 kilograms of cannabis and 43 grams of ketamine. Ecstasy powder, ecstasy tablets and a pill press for making more tablets were also seized. Police said they found the Bitcoin mining operation in one of the bedrooms with 19 computers set up for cryptocurrency mining, only 10 of which were running due to the limitations of the local power grid.

“It is the first time that drug trafficking is so directly linked to the virtual data mining of cryptocurrencies,” said Subprefect Eduardo Gatica, head of the Southern Anti-Narcotics Brigade to local media. “It had not happened before in the country.”

Piña was not arrested at the house with the cryptocurrency equipment, but at a different location about a week prior on August 30. According to the El Mostrador article, Piña was in possession of 13 kilograms of cannabis, 71 grams of cocaine hydrochloride, two firearms and ammunition at the time of his arrest. A previous raid on August 5 also resulted in four arrests and the seizure of 1.3 kilograms of cannabis as well as vehicles. Subprefect Gatica said the operation “was divided into three phases, in order to achieve the total dismantling of this criminal group.”

“Our investigation was aimed at dismantling a group of violent crimes dedicated to drug trafficking that operated in the southern area of ​​the capital, which had links with different communes, such as La Cisterna, San Miguel, Buin, Pedro Aguirre Cerda, Cerrillos and Lampa,” Subprefect Gatica said.

Police said they have no way of knowing whether the cryptocurrency mining equipment was paid for with legitimate or illegal money and they also have no way of knowing whether or not the group was somehow laundering illegal drug money through cryptocurrency, but finding both in the same house certainly may indicate the two were at the very least related. Due to the anonymous and multi-layered nature of Bitcoin transactions, it is very difficult if not impossible for law enforcement agencies to prove criminal activity, or even to quantify how much criminal activity is taking place.

“Verifying the criminal origin of wealth held in or laundered via cryptocurrencies is very challenging. As such, the extent of the use of cryptocurrencies to launder funds obtained from conventional offline criminal activities is hard to determine,” said a 2023 report on cryptocurrency by Transparency International. “This is because in such cases, the cryptocurrency is not transferred from addresses that have previously been linked to criminal activities.”

To that end, cryptocurrency has been used more and more in recent years to launder money obtained through illegal methods. The report said it is often as simple as exchanging cash for Bitcoin at any Bitcoin ATM.

“…proceeds of crime in fiat currency are initially transferred into cryptocurrencies with no immediate indicators pointing to the criminal origin being visible on the blockchain,” the report said. “Consequently, the unlawful use of cryptocurrencies is now no longer restricted to ‘on-chain’ crimes such as blackmail scams or ransomware attacks carried out by cybercriminals who demand payment in cryptocurrencies. Nor is it restricted to use for money laundering. Rather, cryptocurrencies are now used to perpetrate all manner of offenses that entail the exchange of monetary value.”

As for Kevin Piña Catalán and his gang of drug traffickers, police told El Mostrador that the whole matter is still under investigation, including the cryptocurrency aspect and how it may or may not have been related to the other illegal activities. Authorities said those arrested faced a plethora of different charges including drug trafficking, money laundering and ammunition trafficking.

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The idea was, on the surface of it all, quite original. Juicy Fields, a cannabis “investment” platform, supposedly connected micro investors with small cannabis farmers to “fund” crop cultivation that was then legitimately sold. Investors were told they could expect returns of up to 66% on their investment in just 90 days. More problematically, investors were also allowed to deposit up to 180.000 euros via bank transfer or crypto investment in the platform without going through required background checks that are standard procedure in both reputable banking and fintech apps.

Suspicious or not, for the past 18 months or so, Juicy Fields was a big thing in the Spanish speaking world (in Latin America and in Spain). The company also established itself over the last year and a half across Europe by throwing sponsorship money at respectable festivals and gatherings. They established offices in Holland and 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. But Juicy Fields was smart. It made its presence felt in highly effective ways, particularly in Europe, in 2021. As the world opened up after the pandemic, the chance to feel happy, party with friends, and make money was a tantalizing draw.

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

Last Monday, on July 11, remaining company workers went on strike. The company then froze cash withdrawals, preventing investors from reclaiming their money. Many had invested small amounts in the beginning and gone through a few successful rounds where they actually saw returns before committing larger sums. These funds have now disappeared, probably forever. Multiple investors reported taking out loans to fund their Juicy investments.

Company execs steadily disappeared, including scrubbing their profiles online. By Wednesday, the company’s extensive cyber network infrastructure was shut down. Videos have been removed from social media, although their tantalizing promises and headlines still remain.

The 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.

Becoming a potpreneur never seemed so 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. The company also strategically attempted to align themselves with more established and reputable firms in the industry (although at this point all have put considerable distance between themselves and Juicy Fields) to back up their claims.

The bank account of the firm was listed in Cyprus. 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.

There were lots of questions, and many rumors, but nobody seemed to have any answers.

Before the final meltdown in the middle of July, the fraud began to unravel after a luxurious, Juicy-funded splash this spring at an industry event in Barcelona. 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. It was certainly pretty but it did not exactly inspire confidence that all was kosher.

In Spain, the local press at least began to report that the company was violating Spanish securities law. The German financial regulator, BaFin, posted a warning on its website on March 30 that the firm had published no prospectus which is required for the sale of any kind of security. As a result, German sales were shut down.

By the end of May, the kitchen was getting unbearably hot, and CEO Alan Glanse, stepped down. In June, he began publicly blaming several Russian nationals for the mounting problems at the company and further denying 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.

By now, however, the house of cards on which the company built their premise has collapsed. 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. According to the Spanish media, which has been increasingly covering the story, 5,000 Spaniards lost hundreds of thousands of euros in what is now being called the largest crypto scam in Spanish history.

A Lack of Accountability

With the exception of Eldiaro.es, up until this week, the cannabis press stayed silent. Nobody dared to say anything publicly. The company appeared to have too much money. Established cannabis firms, including a German distributor, announced multi-million euro deals with the company, some as late as this spring.

That, of course, is now over.

Sadly, however, the real question however, is not whether it will happen again, but when. There are many in the industry who do not want to be named who began discussing the matter privately as early as last year but were shut down by those who defended, invested in, or were sponsored by 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.”

The problem, of course, is that nobody said anything soon enough, publicly enough, and with enough authority to prevent what many are calling the first serious scam of the burgeoning and legalizing European industry.

Given what is now happening especially in Germany, the excitement over recreational cannabis reform is only beginning, along with the hype. As a result, the Juicy Fields scandal may be the first of its kind, but sadly, it won’t be the last.

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Former Detroit Red Wing and NHL star Darren McCarty is getting involved with NFTs, which are sweeping the cannabis community. Perhaps out of curiosity, the former enforcer recently bought an NFT from Australian artist TROG, “your favorite cannabis culture artist,” who is launching NFTrogs with McCarty as an early buyer.

The initial NFT release was launched publicly January 10 on the Ethereum ERC-20 platform, with intentions to expand to other chains such as Binance Chain and others in the near future. Ethereum (CRYPTO:ETH) blockchain and its token Ether—the second most valuable cryptocurrency—trails behind only Bitcoin in value.

The team is currently minting and offering NFTrogs on OpenSea. So, for novices who don’t have an OpenSea account, it would be a good time to go sign up, and they also need to choose a wallet.

TROG‘s characters are reminiscent of his extensive work drawing posters for cannabis events. You may recognize his trippy characters from his Killer Weed Coloring Book or Deadlines, a collectible book featuring his endless portfolio of cannabis event posters. He is proud to announce one of four NFT drops that make up the first 100 characters. The first round went public and on sale on January 10. The characters are individual NFTs of TROG, but he is building digital contracts so each NFT has its own added bonus.

Meanwhile, McCarty has been busy in the cannabis industry—launching cannabis flower and hemp products under The Darren McCarty Brand in collaboration with Pincanna about two years ago, and he also recently unveiled its collection of THC, CBD + CBN gummies.

McCarty bought NFT TROG #25, one of the earliest characters available on an NFT. “Four-time Stanley Cup Champion Darren McCarty here,” the former enforcer told High Times in a video message. “Now, NFTs and all this stuff—I’m just starting to learn about it. But all I heard was […] ‘TROG.’ The eyeballs, man! I’m in! TROG NFTs. You should be too.”

If you don’t understand NFTs—you’re not alone. NFTs—or non-fungible tokens—are commonly part of the Ethereum blockchain. Ethereum is a cryptocurrency, like Bitcoin or Dogecoin, but its blockchain also supports these NFTs. “Non-fungible” more or less means that it’s unique and can’t be replaced with something else. They only exist online, sometimes as a JPEG, but have real value.

How NFTs Work

People getting into NFTs hope to see their money grow. “Let’s say you get NFT TROG #26,” TROG told High Times. “You buy that NFT,  it sits in your digital wallet, then in three days you get a message from us with a QR code. You scan that QR code to get your reveal.”

The system allows money to grow. “Or a seed drops out of your NFT, that seed appears in your digital wallet,” TROG said. “In five days it sprouts… in five more days it turns into a little plant, then in two weeks the plant turns into a bigger plant. Then in 30 days bags of buds start appearing in your digital wallet. These bags of buds are actual new NFTs that have contracts attached to them—you can sell these buds as a NFT sale if you choose, or you can hang onto them.”

Each NFTrogs is also the key to unlocking a canvas series of 10 artworks—if you own the NFT it gives that holder the chance to purchase the number one canvas in that series. 

“You may get a QR code—and when scanned, it may send you a pic of your character with a broken bong and a code to redeem. You contact us directly and we redeem your code and send that person a new TROG GLASS bong. Or you may get a message saying your grinder broke,  and code to redeem to get a new grinder, etc.”

TROG GLASS features beautiful glass pieces—beakers, bongs and more—featuring the cartoon characters of TROG.

TROG said that he may airdrop collector artworks that include free tickets to cannabis events or festivals he’s involved with, for holders of NFTrogs.  

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Pretty soon you can be the proud owner of unique digital assets with corresponding legendary glass art. Jerome Baker Designs (JBD), purveyors of award-winning unique functional glass art, will create unique digital art pieces and corresponding physical assets on the Ethereum blockchain for a collaboration with FDCTech, Inc.

FDC (OTCQB: FDCT) will provide the Non-Fungible Token (NFT) platform to mint and issue NFTs. Collectors can purchase Jerome Baker Designs drops through online silent auctions, global offers and open editions. The platform is expected to be operational in the early part of the first quarter, ending on March 31, 2022. 

Founder and President of Jerome Baker Designs Jason Harris—the artist behind unique and rare luxury pieces including bongs, bubblers and pipes—will develop original physical and digital works for the project. Harris explained his pivot into crypto and the reasoning behind it. 

“The blockchain industry has already changed the world with Bitcoin alone, which I have been accepting since 2016 for bubblers and bongs,” Harris told High Times. “At JBD, we have been exploring NFTs since before the term NFTs existed. We were exploring, along with many other companies, using non-fungible token technology towards supply chain.”

Original Jerome Baker Designs pieces have been customized for global artists including Santana, Snoop Dogg, George Clooney, George Clinton, 311, Sublime/Skunk Records, Widespread Panic, Grateful Dead, Rita Marley, DMB, Phish, Slayer and DRI.

“As an artist, I couldn’t be more stoked to see this technology applied towards arts,” Baker explained. “The creative world has just been transformed and artists will be more empowered than ever to take control of their art and their lives. We are working now on initiatives with an eye towards leading the way in the NFT universe in general with one-of-kind pieces pegged to an NFT. That is where we think this leads: to the new phygital realm, where the physical and digital meet.”

“We are thrilled that Jerome Baker Designs has entered the NFT space with FDC. It is exciting to work with such a well-established iconic brand that has made modern artistic glass and pipe-making a highly desirable collectible art collection,” FDC Founder, CFO and NFT Team Leader Imran Firoz said. “Our Company and Jerome Baker Designs are committed to creating authentic digital and physical art pieces to showcase Jason Harris’ unique and rare work on the NFT platform, where collectors can seamlessly buy, sell, and store digital art and collectibles.”

Jerome Baker Designs

Jerome Baker Designs launched after founder Jason Harris apprenticed under Bob Snodgrass, “Godfather of artistic hard glass” and founder of the modern pipe-making industry. Snodgrass had been peddling colorful glass pipes at Grateful Dead shows across the country—significantly contributing to the popularity of glass in the world of cannabis.

Harris followed in the footsteps of Snodgrass, mastering the fine art of glassblowing.

Jerome Baker Designs was recently named one of the top ten glassblowers in the United States by the Cannabis News Update. Jerome Baker Designs won the 2018 High Times Cannabis Cup for “Best Glass” in Sonoma County and was runner-up in “Best Glass” in the Sacramento 2018 High Times Cannabis Cup. 

In September 2020, JBD and Jason Harris were featured in the High Times Annual Art issue alongside Tommy Chong and Shea McAdams of seedleSs clothing. In 2003, Harris was one of about 50 people who were busted by federal agents during the George W. Bush administration amid Operation Pipe Dreams. It demonstrated that even glass pipe sellers aren’t protected from facing criminal charges.

“We, at JBD, passionately believe in the future of a blockchain-crypto-driven digital art world and the ultimate democratization and distribution of authentic and protected digital assets. We’re excited to collaborate with FDC as they have a proven track record in building successful customized trading technology,” said Harris.

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