Kansas City Kratom Maker Destroys $10M in Product After DEA Places Mitragynine Pseudoindoxyl in Schedule I

Why it matters

The voluntary destruction of $10 million in inventory by the nation's leading mitragynine pseudoindoxyl manufacturer signals how swiftly the DEA's Schedule I action is reshaping the kratom-derived products market. Consumers who relied on these products face an immediate supply gap, and questions remain about whether they will substitute with other substances.

The big picture

The DEA's August 25, 2026 temporary scheduling of mitragynine pseudoindoxyl (MGPI), MGM-15, and MGM-16 targeted what federal officials called potent, deliberately manufactured synthetic opioids distinct from botanical kratom. The order coincides with federal data linking MGPI to at least 56 overdose events — 48 of them fatal — between February 2025 and May 2026. The action specifically exempts trace-level MGPI found in traditional botanical kratom products, though that distinction is not written into the order itself, only in DOJ enforcement guidance.

Key findings

• CBD American Shaman, headquartered in Kansas City, produced the majority of MGPI products sold nationwide and destroyed roughly $10 million in inventory at cost after learning the DEA order was imminent.
• Products containing MGPI first appeared on the market in 2024; MGM-15 followed a year later.
• A study cited in the DEA order found that of 51 MGPI products sold online, 71% combined MGPI with 7-OH and 35 featured appealing flavors like berry and watermelon in bright packaging.
• University of Florida pharmacologist Christopher McCurdy, who co-authored a 2026 mislabeling study, expressed concern that the Schedule I classification will push products into a gray market without ingredient disclosure.
• The American Kratom Association filed a federal lawsuit the day after the order, seeking to confirm that botanical kratom containing only trace MGPI is legally protected.
• A parallel congressional inquiry targets possible conflicts of interest involving DHS Secretary Markwayne Mullin, who reportedly holds up to $1 million in Botanic Tonics, a competitor of 7-OH products.

What they say

"These are potent opioids being manufactured and sold in consumer products, often under labels that obscure their true risks," said U.S. Attorney General Todd Blanche in a DOJ news release announcing the scheduling action.

Bottom line

The DEA's Schedule I order for MGPI effectively ended a major sector of the enhanced kratom market overnight, but enforcement ambiguity around botanical kratom containing trace amounts of MGPI has already triggered litigation.