Cannabis firm LFTD Partners buys $350K worth of USDC, loses it to hackers
LFTD Partners Inc., a publicly traded cannabis and psychedelics company, has fallen victim to digital asset theft after converting a substantial portion of its cash into stablecoin.
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LFTD Partners Inc., a publicly traded cannabis and psychedelics company, has fallen victim to digital asset theft after converting a substantial portion of its cash into stablecoin.
On April 1st, 2025, LFTD Partners converted $350,000 of its cash into USD Coin (USDC), a digital stablecoin pegged to the US dollar.
Shortly thereafter, an unauthorized and unknown third party compromised the digital wallet containing the USDC, “resulting in the theft of the full amount,” the company said in a filing with the Securities and Exchange Commission (SEC).
"At this time, the Company is unable to predict whether any of the stolen funds will be recovered,” the statement reads.
LFTD Partners reported the incident to the US Federal Bureau of Investigation, “continues to cooperate fully in the ongoing investigation,” and is also consulting with the outside law firm regarding the matter.
The sum is significant for the company. Last year, its cash position decreased by approximately 41%, to $3.1 million from $5.4 million. According to the annual report, the sums included $1M of restricted cash.
The firm said it “orally entered” into an interest-free loan agreement with an affiliate of the Company’s Chief Executive Officer and Chief Financial Officer.
“The purpose of the loan is to provide short-term working capital to address cash flow needs resulting from a recent cybersecurity theft involving the Company’s digital assets,” the firm said.
“The loan is unsecured, does not bear interest, and is repayable upon demand. The Company intends to draw down $350,000 under the arrangement.”
It’s unclear how the hackers gained access to the funds and who is responsible for the attack. Cybernews has reached out to LFTD Partners for any additional details and is awaiting its response.
LFTD Partners is a company from Jacksonville, Florida. It owns hemp, wellness, and energy products maker Lifted Made, which manufactures and sells hemp-derived and other psychoactive products under the Urb brand, and also owns the Mielos and Rebel brands.