When Kentucky Attorney General Daniel Cameron announced this year that his office planned to take at least $42 million from state money and use it to fund corporate research for an experimental psychedelic addiction treatment, he caught many people off guardâincluding some of the officials tasked with allocating that money.
The proposalâto fund development for the alternative therapy ibogaineâand the continuing mystery of Cameronâs decision, immediately became a flashpoint in the state. Democrats and addiction specialists are particularly puzzled why Cameron and his allies are so insistent on studying ibogaineâan obscure, unproven, and possibly âperilousâ plant-based treatment that makes you violently ill and whose advocates include military veterans, Melissa Etheridge, Lamar Odom, and the original Wolf of Wall Street.
The $42 million grant is due to come out of the stateâs landmark $842 million settlement that Kentucky won last year from opioid manufacturers, after their addictive products precipitated hundreds of thousands of opioid deaths in America.
The state administers its cut of the money through a group called the Opioid Abatement Advisory Commission, which is housed under Cameronâs AG office. Cameron appointed a majority of the commissionâs 11 members, including its chair, state attorney W. Bryan Hubbard. After a series of public and private hearings on the ibogaine project, the commission is set to vote on the proposal next month.
Adding to the mystery is why the members who Cameron appointed to the commission have taken so quickly and stolidly to this specific treatment.
While a number of advocates with no clear Kentucky political connections have invested time and energy in the effort, there are other players with clear financial and political tiesâfor an experimental psychedelic drug that surprisingly leaped to the front of the line for the commissionâs exponentially largest grant yet.
The politics of the issue are unavoidable. Ibogaine didnât appear to be on the opioid commissionâs radar until Cameron and Hubbard announced the grant proposal on May 31âin one of the most conservative states in the country, where Republicans (including Cameron) reluctantly got behind legalized marijuana just this year.
No one on the commission had even discussed the ibogaine idea with members appointed by Cameronâs political opponent, Democratic Gov. Andy Beshear, until Cameron and Hubbard held a press conference proposing the deal in late May.
A person with knowledge of Beshearâs thinking told The Daily Beast that the ibogaine proposal was a shock to the governor and his staff, and it came against the wishes of the stakeholders in the state most familiar with these treatments.
âCameron came out of the blue with this, and it caught everybody off-guard thatâs close to the issue,â this person told The Daily Beast. âAnd the individuals running recovery facilities are behind the scenes very opposed to taking those funds away from the facilities.â
âItâs blood money, and those funds were intended and committed for those people working every day in the recovery field. There was never any talk of the money being used for corporate R&D,â the source continued. âThat money, we understood, was for groups working every day to help people recover.â
But The Daily Beastâs investigation into the people and entities behind this project revealed an intricate nest of political and corporate ties. Those ties include a sitting U.S. Senator, a top GOP strategist, and a billionaire Republican megadonor who recently put millions of dollars into a group backing Cameronâs faltering gubernatorial campaign.
That megadonor, longtime conservative financier Jeff Yass, stands to reap massive profits from the development of ibogaine, which, despite its controversies and health drawbacks, has begun to attract a niche following of devoted patients and investors as a potential miracle cure to break opioid addiction.

Kentucky Attorney General Daniel Cameron delivers a live address to the largely virtual 2020 Republican National Convention.
Jonathan Ernst/ReutersYassâ firm sharply increased its investment in ibogaine research around the time of Cameronâs announcement, and executives at two of the firms Yass is invested in have rallied openly for the Kentucky program, including in public hearing testimony this summer.
Today, the gubernatorial election and that $42 million research grant are both barreling towards votes this fall. But while the public will get to decide Cameronâs fateâand his hopes have dimmedâthe corporate grant still looks poised to sail through. Thatâs in part because those voters are all on a government commission, and the majority of them were personally appointed by Cameron.
About a week after Cameronâs ibogaine announcement, Yass gave $3 million to a super PAC that has recently pumped out at least $1.2 million worth of ads backing Cameronâs candidacy, according to Federal Election Commission filings. That donation has accounted for roughly 98 percent of the groupâs total reported fundraising this year.
And while the commission has already allocated a number of grants, this one stands out.
The OAAC has so far distributed its grant money to grassroots enterprisesâlocal municipal programs, law enforcement organizations, addiction and recovery centers, faith-based groups, frontline workers, and the like. But this grant would be a public-private partnership with a pharmaceutical firm, subsidizing corporate research and development, with the firm matching the $42 million.
Notably, this single grant is also much larger. According to the commissionâs website, the panel has so far distributed $32.5 million, scattered across 59 groupsâor about $10 million less total than it plans to give to a single ibogaine corporate partner. The largest single allocation to date is $1,000,000. The ibogaine grant would provide $7 million a year for six years.
Perhaps more importantly for the firms, however, the partnership with Kentucky would give them a state where they could conduct clinical trials for a drug that is currently illegal in all 50 states and every country but Mexico and New Zealand.
Those factsâcombined with the GOP-led commissionâs striking decision not to consult its Democratic members about the proposal ahead of timeâimmediately rang alarm bells for Democrats, especially for Beshear.
The opioid commission has never clarified the origins of the proposal. Its chair, the Cameron-appointed Bryan Hubbard, has claimed sole credit. But the political and corporate connections are difficult to ignore.
The Daily Beast sent detailed comment requests to Cameronâs campaign and office, as well as to Hubbard.
Hubbard, who works in the office of attorney general, declined to answer questions on the record. After an off-the-record phone call, Hubbard texted The Daily Beast the email address of Brett Waters, the head of a nonprofit that has been closely involved in the ibogaine project from the beginning.
Waters is co-founder and executive director of Reason for Hope, a group whose CEOâa former Sen. Mitch McConnell (R-KY) appointeeâjoined Hubbard and Cameron at the May 31 press conference.
Days earlier, Reason For Hope had retained the lobbying firm run by former Sen. Tom Daschle (D-SD) to advocate on the federal level for the Breakthrough Therapies Act, Politico reported.
Reason for Hope is, as Waters told The Daily Beast, deeply committed to advancing the safe and effective development of alternative therapies to help untold millions of Americans struggling with trauma and addiction. The group has no corporate backers, Waters said. He also called Hubbard an âincredibly positive figureâ in this process, one who ensured that âdiverse voicesâ contributed to the discussion, including indigenous voices. (The commission features one non-white memberâa Cameron appointeeâand has been called out for lack of diversity; Cameron, meanwhile, has attacked workplace diversity initiatives throughout his campaign.)
âHe is genuine in his desire to help people break free of substance use disorder, and this is a brave proposal,â Waters said of Hubbard.
A spokesperson for the AGâs office provided a 264-word statement expressing confidence in the commission and promoting the Kentucky Opioid Symposium, which takes place Monday and Tuesday. While the statement touted the $32.5 million in previously allocated grants, it did not address almost any of the detailed information and questions we provided as the focus of this article. The office did not respond when offered the chance to follow up.
However, the statement said the âplanning and co-hostingâ for this conference ârequired that certain agenda items be pushed until the Commissionâs November meeting,â apparently in response to the question of why the vote on the grant was pushed back to Nov. 15âa week after the election, and more than a month after the symposium. (The Daily Beast has since learned that opposition researchers in recent weeks have requested records from Cameronâs office related to the ibogaine program.)
The statement also noted that Hubbard had âinvited every member of the Commissionâ to the May 31 press event. The criticism from the members, however, was not that they hadnât been invited to a press conference, but that they had not discussed the proposal at all before Cameron made his âfait accompliâ announcement, as one Democratic member of the commission described it.
Yassâthe fourth-largest megadonor in the country and the wealthiest person in the state of Pennsylvania with a net worth estimated over $25 billionâstands to profit massively from ibogaine, especially in the long run.
Yassâ investment firm, Susquehanna International Group (SIG), currently holds around $5 million in ground-floor stakes with four biopharmaceutical firms focused on developing psychedelic addiction treatments. More than $4 million of it lies with two entities leading the charge on ibogaine, according to SIGâs August filing with the Securities and Exchange Commission.
While it may be natural to downplay those numbers in the context of SIGâs sprawling $491 billion portfolio, those pharmaceutical companies are currently trading low. If treatments like ibogaine gain traction with the publicâand more importantly, with regulatorsâthat niche market, and those holdings, will explode. As The Daily Beast previously reported, the entire purpose of the Kentucky program is to help ibogaine receive federal approval as a âbreakthrough therapy,â which would âaccelerate the regulatory pathway for legal status nationwide.â
As it turns out, the Kentucky opioid commission has tapped Yass-backed corporate entities to help make the case for ibogaine investment.
In July, the commission held a public hearing where health experts and scientists touted the benefits of ibogaine. Two of those scientists, however, were also engaged in a joint corporate venture involving ibogaine.
And yet, the meeting agenda published by the OAAC only discloses the corporate background of one of themâDr. Srinivas Rao, co-founder of German biopharmaceutical firm ATAI Life Sciences. The other person in the joint venture, Dr. Deborah Mash, was only identified as professor emerita at the University of Miami School of Medicine, not in her capacity as founder and CEO of DemeRxâwhere ATAI holds majority control, according to SEC filings.
Yass has stakes in ATAI, which is heavily backed by another billionaire Republican megadonor, Peter Thiel. DemeRx is an ATAI subsidiary, and ATAI also owns a considerable share of another one of Yassâ psychedelic investments, Compass Pathways.
According to an SEC quarterly filing submitted in August, after ditching the stock entirely months earlier, Yassâ firm upped its ATAI investment significantly between April 1 and June 30. That filing also shows about $3.6 million in a company called Mind Medicine, which has been conducting ibogaine opioid abatement trials. All of these investments would stand to give SIG exponential returns if regulatory gatekeepers begin to clear the way for ibogaine developmentâand a partnership with a state government is a major step along that path.
But itâs not just Yass. The opioid commission and its work on the issue so far bears a number of ties to a man named Rex Elsass, an influential longtime GOP strategist and media buyer who has performed millions of dollars of work for Yass-aligned groups.
Elsassâ son, Reid, died tragically of an overdose, and his family created a nonprofit called the REID Foundation dedicated to recovery efforts, including emergent therapies. Last month, Elsass, an Ohio resident, spoke movingly at a public hearing in support of ibogaine, reportedly describing himself to the commissioners as âyour neighbor next doorâ without apparently disclosing his long and unavoidably political background.
A partner organization of Elsassâ nonprofit, called Reason for Hope, also provided officially sanctioned testimony in the same hearing, and their CEOâa former Sen. Mitch McConnell (R-KY) appointeeâtook part in the May announcement.
Days ahead of that announcement, Reason for Hope brought on a top federal lobbyistâDaschleâto advocate for the Breakthrough Therapies Act. The nonprofitâs CEOâretired Marine Corps Lt. Gen. Martin Steeleâhad been previously appointed to a federal veteransâ health care commission by Cameronâs political mentor, McConnell.
Additionally, a former adviser at Elsassâ company, The Strategy Group, named Sally Hauser, now heads a group called the Kentucky Ibogaine Initiative, according to her LinkedIn. The nonprofit just registered with Kentucky this year. (Hauserâs position with the group disappeared from her LinkedIn page at some point after The Daily Beast sent out comment requests.)
Elsass told The Daily Beast in a phone call that, to the best of his knowledge, he had never met Jeff in person, and that he had been first tipped to Kentuckyâs potential by the Etheridge Foundation, started by folk-rock LGBTQ icon Melissa Etheridge. He explained that his ibogaine advocacyâa âmiracle medicine that needs to be researchedââis rooted in deep, personal loss and a desire to help mitigate tremendous future tragedy.
âThe solutions just werenât there, and I was desperate for new methods to help my son. So we looked for other means, and as a result, he ended up in Peru,â he said, referencing where his son received his first iboga treatment. âPlant medicines helped him and extended his life for several years, and left me with a mission.â

President Donald Trump listens to Kentucky Attorney General Daniel Cameron during a roundtable discussion with law enforcement.
Kevin Lamarque/ReutersIbogaine, which is derived from the iboga plant, found in West Africa, has shown anecdotal promise for curbing opioid use disorderâa notoriously difficult medical problem that often frustrates and frequently appears to defy treatment. However, ibogaineâs U.S. clinical trials have been marred by the drugâs tendency to cause heart attacks. Today, ibogaine is illegal in almost every country, including the United States, where itâs classified as a Schedule I substanceâthe same level as heroin, cocaine, and LSDâmeaning it has no accepted medical benefits and carries a high risk of abuse.
Ibogaine, like cannabis, psilocybin, and MDMA, has begun to attract attention as an alternative therapy, but with the caveat of what TIME magazine described as âperilousâ health risks. The drug, like other psychedelic treatments, is said to help patients contend with trauma, which many addiction and behavioral scientists believe to be at the root of a large portion of drug addiction and abuse cases. (Some military veterans credit ibogaine with managing their PTSD, and a few testified to that effect this summer in Kentucky.)
Along with that attention, of course, comes a lot of money. But most institutional research shut down years ago, after clinical trials delineated a clear correlated increase in risk in cardiac events. There isnât a wide body of sanctioned research on the drug, and many of the recent studies have drawn from small sample sizes.
While the medical, social, and financial benefits from a miracle drug to combat opioid useâwhich claims about 100,000 American lives a yearâmight be immense, they wonât certainly wonât be immediate. Even with a massive funding push and a smooth run of trials, Food and Drug Administration approval might still be 10 years away, according to the CEO of ATAI Life Sciences.
Of course, the Kentucky proposal is designed to help with that. Kentcuky would become the first state in the country to legalize ibogaine trials, a major and necessary step on a path towards deregulation. As Hubbard said in May, a key component is to âincubate, support and drive the development of ibogaine all the way through the FDA approval process.â
He added that Kentucky would also work to create âthe platinum standard modelâ for ibogaine recovery treatment, which the state would do âby hosting multi-site clinical trials right here at home.â
Still, the drug has a committed base of support. Advocates include military veterans, addiction survivors and families, and political players like former Texas Republican Gov. Rick Perry. Last year, Sen. Cory Booker (D-NJ) teamed up with conservative Sen. Rand Paul (R-KY) to introduce a bill that would make it easier for patients to access controlled substances for medical treatment, starting with psilocybin and MDMA. (That news caught the eyes of investors in the small but burgeoning psychedelic stock trendâas did Cameronâs Kentucky plan.)
Paul, it turns out, also goes way back with Yass.
Last October, the Louisville Courier-Journal said Paul was Yassâ âfavorite politician on the national scene.â The relationship also runs deep, with Yass pouring more than $15 million into the Paul-aligned âProtecting Freedomâ super PAC since 2017, according to Federal Election Commission data. Protecting Freedom also contracts with Elsass, with one of his entities as its top vendor in the 2022 cycle, according to data compiled by the Center for Responsive Politics.
It also turns out that Yass made his largest-ever contribution to that very same super PACâa flat $3 millionâon June 8, about one week after Cameronâs ibogaine announcement. Then, in August, as Cameronâs polls dropped, the super PAC put that money toward a series of political ads supporting Cameronâs campaign and attacking Beshear. Another Yass-funded super PAC, called âSchool Freedom Fund,â also began pumping out ads around the same time, the Kentucky Lantern reported.
Paul is another late-comer to the pro-Cameron camp. He didnât make an endorsement in the primary, but after the Protect Freedom ads went up, Paul began speaking up for the AGâand appearing at events with him.
But even without the political intrigue, which has not yet been reported, Cameronâs announcement raised a number of eyebrows. Thatâs in part because he hadnât consulted members of his own commission in advance, but also because it was difficult for some Kentuckians to understand why, with so many urgent needs in the addiction and treatment communities, Cameron seemed so intent on funding research into this singular alternative therapyâwhich likely wonât even be authorized for medical use within a decade, according to the commissionâs own expert testimony. (Again, Cameron only embraced legalizing marijuana in March, after years of hedging on the issue.)
In 2022, Cameronâs office won a long-fought court battle against opioid manufacturers, carrying on the work of his AG predecessor and now political rival Gov. Beshear. The legislature then tasked Cameron with managing the fruits of that victory, an $842 million settlement paid out by opioid manufacturers whose products have ravaged the state for decades.
Half of that $842 million went directly to Kentucky cities and counties, with the oversight and allocation of the stateâs remaining half falling to the advisory commission. The $42 million in the research grant, Hubbard has claimed, would correlate to the same amount the legislature recently allocated to an alternative release program that reroutes qualifying criminal offenders with mental health and substance use issues to community support programs, covering 11 counties. (The offices of Kentuckyâs governor and attorney general are both the subject of a Justice Department investigation into whether the state âsubjects adults with serious mental illnessâ in the Louisville area to âunnecessary institutionalization,â as opposed to community programs; Louisville is in one of the counties that wonât receive benefits from the alternative release bill.)
While the OAAC is a bipartisan group, the legislature empowered Cameron to pick the chair of the 11-member commission, along with five other members, giving Cameron majority control.
After Cameronâs surprise announcement in May, Beshearâs two political appointees on the commission pushed back immediately, questioning the opacity of the proposalâs origins and expressing skepticism about subsidizing a corporate partner on what appears to be a narrowly-tailored moonshot.
The lone academic representative, Dr. Sharon Walsh of the University of Kentucky, also pushed back in a June preliminary hearingâand put her finger squarely on what she said was âa clear conflict of interest.â
Walsh asked Hubbardâa state attorneyâwhy the focus on ibogaine specifically, as opposed to other proven treatments.
âIâm not sure why we need other drugs to target opiate withdrawal,â Walsh said. Hubbard replied that âthere are othersâ who argue itâs a worthwhile option.
Walsh then singled out Mash, the DemeRx CEO.
âSo sheâs going to come and talk to us about the development of this with it, you know, with the hope of getting money. Thereâs a clear conflict of interest from a person who has ownership of a company whose sole purpose is to get the drug to market,â Walsh said. âThatâs why Iâm asking for balance.â
Walsh resigned from the commission this month, and her name is no longer on the website. Two people familiar with the events told The Daily Beast that she stepped down in protest of funding ibogaine, which does not have FDA approval. (The AGâs statement to The Daily Beast thanked her for serving on the Commission, and said that âshe and her tremendous expertise will be missed.â)
While these connections have not been previously reported, the ibogaine proposal was so out of the ordinary that it almost immediately raised questions of potential pay-to-play.
In June, longtime Lexington Herald-Leader columnist Linda Blackford raised the specter of political influence.
âTo make such a splash over one civil servantâs research into one drug looks strange, especially when that civil servantâs boss is running for governor,â Blackford wrote, referencing commission chairman Hubbardâs impassioned support for ibogaine. Blackford also searched Kentucky and federal filings for evidence that Mash, the DemeRX CEO who testified at the first public hearing, had contributed to groups supporting Cameron.
Blackford didnât find any donations, and The Daily Beastâs review of campaign finance filings shows Mash is, if anything, a committed Democratic donor. Even so, Blackford wasnât convinced.
âIf you have better information, let me know,â she wrote in her column.
The ibogaine controversy comes after reporting of financial conflicts of interest between Cameron and political donors with business before his AGâs office. While the Yass-funded super PAC entered the fray as Cameron was absorbing major losses to Beshear in both polls and fundraising, the air support hasnât been able to reverse that negative trend.
And while the commission will decide the fate of the ibogaine funding on Nov. 15, Kentucky will have already elected its next governor.