More than two million dollars in cash and over 100 pounds of cannabis products were seized after police raided dozens of smoke shops in eastern North Carolina.
Authorities in Kinston say the operation targeted stores accused of selling marijuana products disguised as legal hemp. The large-scale action, known as Operation Wintergreen, involved 34 search warrants executed across retail locations and private homes.
The case highlights a growing national battle between cannabis prohibition and the booming market for hemp-derived THC products.
Massive Raids Target Smoke Shops
The Kinston Police Department confirmed that investigators served search warrants at 26 retail businesses and eight residences connected to smoke shop owners and employees.
The investigation began after residents complained about stores allegedly selling illegal cannabis products. Some reports also claimed the products were being sold to minors.
Local detectives worked with multiple agencies to carry out the raids. Federal and state partners included the Drug Enforcement Administration, the Internal Revenue Service, North Carolina Alcohol Law Enforcement, and regional sheriff’s offices.
Police say the operation required weeks of planning and coordination across agencies.
What Authorities Seized
The raids uncovered large amounts of cannabis products, cash, and other items connected to the investigation.
According to law enforcement, officers seized:
• 110.99 pounds of THC products
• 7.84 pounds of khat, a stimulant banned in the United States
• $2,347,030.26 in U.S. currency
• 11 firearms
Because of the large amount of money recovered, investigators worked with a local bank to verify and count the cash.
Evidence technicians are still cataloging items seized during the searches.
Arrests Already Made
Authorities confirmed that four individuals have been arrested in connection with the investigation.
Those charged include Fatehi Alshoabi and Emad Ali, who face charges related to possession with intent to sell and deliver marijuana.
Other individuals connected to the investigation face regulatory violations related to business operations and controlled substances.
Police say additional arrests are possible as detectives continue reviewing evidence.
Understanding the THCa Loophole
The investigation centers on a controversial legal issue known as the THCa loophole.
Under the federal 2018 Farm Bill, hemp became legal nationwide as long as it contains less than 0.3 percent Delta-9 THC.
However, cannabis plants naturally contain THCa, which converts into THC when heated.
When someone smokes or vapes cannabis flower, THCa transforms into THC through a chemical reaction known as decarboxylation. That conversion produces the psychoactive effects associated with marijuana.
Because hemp laws measure THC levels before heating, some retailers have been selling high-THCa cannabis flower labeled as hemp.
Across the country, smoke shops have used this interpretation to sell cannabis products outside regulated marijuana markets.
Industry Context: The Hemp Gray Market
The raids in Kinston reflect a larger crackdown unfolding across several states.
Retailers have built thriving businesses around hemp-derived THC products, including delta-8, delta-10, and high-THCa flower.
Supporters argue these products are legal under federal law.
However, law enforcement agencies often claim the products violate state marijuana laws.
As a result, the hemp industry now operates in a legal gray area where businesses face sudden enforcement actions.
Several states have already moved to restrict or ban certain hemp-derived cannabinoids.
Social Equity Impact
Crackdowns like the one in Kinston raise broader questions about cannabis policy.
In states where marijuana remains illegal, unregulated markets often emerge to meet consumer demand.
However, enforcement actions typically target retail businesses rather than addressing the broader policy gap between hemp laws and cannabis prohibition.
For many observers in the cannabis industry, the situation highlights the need for clearer regulations and more consistent cannabis policies.
Investigation Remains Active
Police say Operation Wintergreen is still ongoing.
Investigators continue reviewing financial records, digital evidence, and seized products. Additional charges and asset forfeitures could follow as the case develops.
For now, the raids signal that authorities are paying close attention to smoke shops operating in the rapidly expanding hemp-derived cannabis market.
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