The Curaleaf Papers: The FBI, Russian money, and the questions behind the cannabis giant

Curaleaf's name is back in the spotlight, but this time not because of market expansion or a new corporate transaction. A recent journalistic investigation claims to have obtained, through Freedom of Information Act (FOIA) requests, documents showing that the FBI investigated the source of funds linked to one of the largest cannabis operators in the United States for at least a year.

According to The Newsground , the federal investigation began in 2018, shortly before Curaleaf went public with a valuation of nearly $4 billion. Documents obtained by the outlet indicate that a federal grand jury in Manhattan issued a subpoena related to an investigation into money laundering and public corruption.

The investigation also reportedly involved a second grand jury in Philadelphia. According to the report, neither process resulted in criminal charges.

The money behind Curaleaf

One of the elements that puts this story back in the spotlight is the financing associated with Russian billionaire Roman Abramovich.

Abramovich, who was later sanctioned by the United Kingdom, the European Union, and Canada, appears to have financial ties to individuals and entities linked to Curaleaf. Previous investigations had already documented loans and investments connected to the Russian businessman.

The new report claims that a company linked to Abramovich came to have a significant stake in Curaleaf and that there was also a loan of approximately $85 million.

One of the testimonies cited by The Newsground indicates that a person involved in information disclosure processes was "probably instructed" to keep Abramovich's name out of certain regulatory documents.

That statement, however, is part of the evidence presented in the journalistic investigation and does not amount to a judicial determination that Curaleaf committed a crime.

The existence of an FBI investigation does not mean that Curaleaf has been found guilty of money laundering, corruption, or any other crime. According to the report, the federal investigations concluded without charges being filed.

Furthermore, Curaleaf and its executives have previously maintained that they complied with all applicable disclosure obligations. State regulators also examined financial relationships related to Abramovich. In Massachusetts, for example, an investigation concluded that Abramovich had no control or ownership of the business and described the relationship as a conventional lender-borrower relationship.

Why does it matter now?

The story comes at a particularly relevant time for the industry.

Curaleaf continues to expand its international presence and recently announced its intention to make an unsolicited offer to acquire Aurora Cannabis for approximately $272 million.

As cannabis moves towards greater financial and regulatory legitimacy, scrutiny is also increasing over who is funding the big companies, where that capital comes from, and how much of that information actually reaches the public.

The FBI documents alone don't offer a verdict on Curaleaf. But they do open a conversation that the cannabis industry will increasingly have to confront: who is behind the money that built Big Cannabis?

And perhaps that is the most important question left by The Curaleaf Papers .