An Israeli citizen, identified only as M., was arrested in Thailand on suspicion of running an illegal cannabis farm in the southern province of Krabi. According to Thai media reports, M. is accused of using Thai nationals to circumvent local laws that prohibit foreign ownership of certain restricted businesses.
The Thai police raided the Cannazon farm owned by M. on Wednesday in a large-scale operation involving more than 50 officers and officials from various regulatory bodies. Authorities said they had been investigating the farm’s operations for over two months. The probe revealed that M. had initially registered the company entirely under Thai ownership, but later increased its capital and transferred shares to create a 51% Thai–49% foreign ownership structure—a setup Thai law classifies as a “sham structure” intended to conceal foreign control.
The raid was carried out under arrest and search warrants issued by the Krabi Provincial Court. M. was identified as the business owner and was detained after allegedly attempting to leave the premises. He later cooperated with authorities once the warrant was explained to him via a translator.
Inside the facility, police discovered a sophisticated indoor cannabis growing operation with automated systems controlling water, lighting and temperature, along with cannabis processing equipment. Authorities also uncovered several additional violations: online sales and delivery of cannabis products, guided tours for tourists, on-site consumption, and the extraction of cannabis with THC levels exceeding 0.2%—which classifies it as a narcotic under Thai law.
The provincial health office has suspended the farm's business license for 60 days and intends to revoke it permanently once the investigation is complete.
Krabi Governor Anukool Suksawat said the raid confirmed reports that foreigners were using Thai citizens as proxies in cannabis ventures. “We will not tolerate the use of our province by foreigners for illegal business activities,” he stated. “All relevant agencies are committed to maintaining public order and protecting Krabi’s reputation as a safe tourist destination.”
Krabi Police Chief Suksom Nakhonwilai added that evidence had been collected pointing to a fraudulent shareholder agreement, in violation of Section 8(3) of Thailand’s Foreign Business Act. Police are also searching for four Thai nationals suspected of acting as front owners. The investigation is expected to expand to other companies suspected of operating under similar “gray capital” models.
First published: 18:31, 01.22.26