New York Cannabis Probe Targets Top Brands Over Illicit Supply Chain

8 April 2025

New York’s legal cannabis market faces new turbulence. On April 7, the state’s Office of Cannabis Management (OCM) opened an investigation into several major brands — including California-based Stiiizy — over allegations they illegally brought out-of-state marijuana into New York’s regulated supply chain.

State law requires cannabis sold in New York to be fully grown and processed within the state. Moving an outside product into the system, known as "inversion," is both a state and federal crime. Regulators conducted surprise audits at Omnium Canna, a licensed Long Island processor suspected of acting as a conduit for illegal supply.

Brands reportedly under scrutiny include Stiiizy, Grön, Mfused, To the Moon, Turn, and Waahoo. Stiiizy and others have denied any wrongdoing. OCM has not confirmed which companies are officially under investigation.

If the allegations prove true, the impact could be wide:

• Local growers could lose business to cheaper, unregulated products.
• Consumers could face risks from products not tested under New York standards.
• The legal cannabis industry could suffer more instability, undermining the state's legalization efforts.