Marijuana-related businesses, as with any emerging industry, are subject to a high level of risk as new operators fight for market advantage and, inevitably, someone attempts to gain that advantage through illicit means.
Here, we see the use of shell companies used by a marijuana distributor to avoid detection and the strict laws governing the financial flows of MRBs.
A new lawsuit filed in California alleges that Eaze, a leading cannabis delivery service, broke the law by accepting credit and debit card payments for cannabis purchases. In a 72-page complaint filed Tuesday in San Francisco County Superior Court, plaintiff Herban Industries claims that Eaze set up a system “designed to conceal the true nature” of cannabis purchases in order to allow customers to pay with credit or debit cards. The ability to accept cards gave Eaze a tremendous advantage over competitors, says Herban, which filed the suit under California’s unfair competition law.
https://www.leafly.com/news/industry/eaze-hit-with-lawsuit-over-credit-card-payments
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