A U.S. bank has filed a lawsuit against a U.S.-based cannabinoid supplier and its founders for failing to repay a roughly $1 million loan. Hemp-friendly First-Citizens Bank & Trust Co. filed the suit against MC Nutraceuticals, its founders, Jeff Worley and Bret Worley, and related MC entities.
The case, filed in U.S. District Court in Texas, alleges the company and its principals failed to repay the loan issued in September 2023.
The legal skirmish is the latest in a growing list of legal challenges facing one of the U.S. hemp sector’s most visible cannabinoid producers, and underscores the risks that have long shadowed the loosely regulated market for intoxicating hemp-derived compounds such as delta-8 THC and similar synthetics.
As policymakers in Washington continue to debate revisions to federal hemp rules, companies built on the intoxicating-hemp model face increasing pressure.
Legal pressure
MC Nutraceuticals and affiliated companies are tied up in a number of disputes over unpaid bills, contract breakdowns and regulatory scrutiny, including:
- A contract dispute with Asterra Labs involving claims and counterclaims over unpaid invoices and alleged misconduct
- A separate action involving American Express against a related MC entity
- A settlement with Colorado authorities over product claims and compliance issues
Together, the cases point to a pattern of financial strain and aggressive business practices that have become familiar in the dodgy intoxicating hemp segment.
Business model
MC Nutraceuticals, with roots in Colorado and operations in Texas, describes itself as “the largest global supplier of cannabinoids.” It was founded by the Worleys in 2020 following the passage of the 2018 Farm Bill. The company initially focused on bulk CBD distillates and isolates, serving other brands and manufacturers. Like many such producers who suffered brutal contraction during the CBD crash of the early 2020s, MC pivoted into synthetic intoxicants such as delta-8 THC, HHC and THCa as those markets emerged.
MC offers live resins, infused materials and custom blends tailored for vapes, edibles and other consumer products. Its affiliated retail brand Vivimu extends that reach into direct-to-consumer channels for intoxicating hemp.
The business operates within a broader network under MC Global Holdings, which includes entities such as MC Nutraceuticals and MC Distribution.
$1M loan in 2023?
First-Citizens, based in North Carolina, has been an active lender in niche and emerging sectors, including hemp. The bank grew steadily through acquisitions during the regional banking consolidation wave, positioning itself as a provider of credit in areas where traditional lenders have been cautious.
That context raises a basic question: why a $1 million loan to a cannabinoid producer in 2023, at a time when regulatory uncertainty around intoxicating hemp products was already well understood? By then, the market for delta-8 and similar compounds was widely recognized as operating in a gray zone – one that federal lawmakers had already signaled they intended to close.
Sector risks
The unfolding litigation highlights deeper structural problems in intoxicating hemp after federal action in late 2025 effectively marked the beginning of the end for the segment. Ahead of a national ban to take effect at the end of this year, states across the U.S. have moved unevenly to restrict or ban the products, creating a patchwork of rules that complicates interstate commerce and compliance.
The market for the unregulated products grew rapidly under a legal loophole in the 2018 Farm Bill that led some shady producers to turn hemp-derived compounds into synthetic, high-producing substances that are still widely available in some states, where they are often marketed to children in knock-off brands mimicking popular treats.