Colorado smoke shop owners to pay $152,000 for selling illegal kratom products

Colorado smoke shop owners to pay $152,000 for selling illegal kratom products

Sept. 21, 2026 (DENVER) - Attorney General Phil Weiser today announced a $152,000 settlement with Sahansila Karki and Gokul Tiwari, resolving allegations that their chain of smoke shops sold kratom products in excess of the legal potency limit.

"Like other legally mandated products, we keep a careful eye on the sale of kratom," said Attorney General Weiser. "If a wrongdoer tries to dodge the law and sell an addictive product that failed to comply with legal limits and labeling requirements, we will hold them and their businesses accountable."

Karki and Tiwari are the founders and owners of the wholesale distribution company "DNB Distro" and 15 brick-and-mortar smoke shops, most of which fall under the "Million Smoke N Vape" brand. Since 2020, Karki and Tiwari's shops have sold convenience store products, smoking paraphernalia, tobacco, and kratom products. During a state investigation, the attorney general's office found that Karki and Towari failed to ensure the kratom products adhered to labeling and packaging requirements and sold them at levels exceeding the allowable limit of 7-hydroxymitragynine ("7-OH"). While the alkaloid substance 7-OH naturally occurs in the kratom plant, companies manufacture concentrated forms of 7-OH products that interact with the same brain receptors as opioids, which can be extremely potent and addicting.

As part of the settlement (PDF), Karki and Tiwari agreed to:

• Fully comply with the Colorado Consumer Protection Act and Daniel Bregger Act.
• Test any kratom products prepared, distributed, advertised, sold, or offered for sale in Colorado to ensure they comply with all local, state, and federal laws.
• Document all kratom product purchases from third parties with invoices and receipts.
• Pay $152,000 to the state. If Karki and Tiwari violate the terms of the settlement, they are required to pay an additional $500,000 to the state.

This settlement is the latest action taken by the Attorney General under the Daniel Bregger Act (opens new tab), which regulates the sale of kratom products in Colorado.

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