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New York investigates cannabis vape brands over allegations of illegal sourcing

Where We Are Now

Since its launch, New York’s legal cannabis industry has been faced with numerous obstacles, such as delays in licensing and competition from illegal sellers. To support New York agriculture and to ensure the safety of products, all cannabis must be grown, processed and packaged in New York.

Investigation into Vape Brands

The New York State Office of Cannabis Management launched an investigation in May 2025 into popular cannabis vape brands including Stiiizy, Mfused, and others. In May 2025, the New York Office of Cannabis Management (OCM) launched an investigation into prominent cannabis vape brands, including Stiiizy and Mfused. As part of the investigation, approximately $10 million in vape cartridges or pre-rolled joints were removed from store shelves.

Omnium Health processed the products, and claims that discrepancies were due to documentation mistakes. It also maintains that extraction was done in an approved facility.

Implications for Industry and Regulation

The ongoing examination of New York’s cannabis regulatory structure is heightened by this investigation. Earlier this year, New York’s 254 billion dollar budget led to significant changes at the Cannabis Control Board. This included the removal of Tremaine’s annual $229,000 salary.

Industry leaders expressed concern over the state’s regulatory approach. Boris Jordan, Curaleaf’s CEO, criticised the high state fees to transition into the legal market, and the apparent lack of enforcement of illegal products from out of the state entering the stores. Jordan said, “New York wanted us to invest and they are now trying to knock us down.”

Six of the original 10 medical cannabis companies in California have decided not to enter adult-use marijuana sales due to these challenges. Even as the number of recreational dispensaries increases, medical patient registrations have also decreased.

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