Psychedelic substances, once associated with the counterculture of the 1960s, are increasingly making their way into mainstream medicine. With projections that the global psychedelic therapeutics market could exceed $10 billion by 2028 (The Business Research Company), investors are pouring capital into the industry while startups and clinics proliferate. Oregon and Colorado have paved the way by legalizing psilocybin for supervised therapeutic use, and more than 20 U.S. cities have moved to decriminalize it. However, as the promise of ‘psychedelic healing’ grabs headlines and funding, disturbing accounts have begun to surface—detailing abuses, inadequate oversight, and a regulatory gap that puts vulnerable patients and emerging professionals at risk.

A Promising Field—and Its Pitfalls

Tim, a physician in Atlanta, is one of many who believed in the clinical promise of psilocybin. Drawn by new research and the opportunity to treat trauma, addiction, and severe depression with novel interventions, he attended a facilitator training program run by the EAST Institute. This center, like many others, marketed itself as a place of “personal healing and transformation” through a blend of plant medicine, meditation, and alternative therapies.

Tim’s initial experiences echoed growing enthusiasm in the medical and business worlds for psychedelics’ potential—to provide relief where standard treatments have failed. Early clinical trials at highly respected institutions, such as Johns Hopkins University and Imperial College London, suggest psilocybin can reduce symptoms of depression and PTSD in controlled settings. Notable tech executives, including Elon Musk and OpenAI’s Sam Altman, have publicly discussed their use of psychedelics to enhance creativity and emotional resilience.

But such optimism has a dark side. Tim, who invested $25,000 in the multi-month training, describes enduring a traumatic sexual assault during a psychedelic session at EAST—vulnerable both due to the profound effects of the substance and an institutional lack of safeguards. Stories like his are, alarmingly, not isolated incidents in the rapidly expanding sector.

The Regulatory Vacuum: A Gold Rush for Entrepreneurs

Unlike other areas of medicine, psychedelic therapy remains largely unregulated. Training requirements for facilitators are minimal—in Oregon, certified practitioners must only complete 160 hours of education, compared to the 625 hours required for a massage license. Centers like EAST are founded by individuals with little or no formal experience in psychiatric care or coaching, operating in the shadows of the law and medical ethics.

This “Wild West” environment, experts warn, is ripe for exploitation. Dominic Sisti, an associate professor of medical ethics at the University of Pennsylvania, notes: “The most aggressive, entrepreneurial people can take advantage of the lack of regulation.” That has enabled a proliferation of treatments in luxury retreats, converted office parks, and even celebrity-branded journeys—often without meaningful safety protocols or oversight.

Allegations of Abuse, Cult Dynamics, and Financial Exploitation

Problems extend far beyond one center. At EAST, multiple women have accused its co-founder of inappropriate touching during “healing” sessions, allegations which remain legally unresolved. Across the U.S., high-profile sexual misconduct and gross negligence cases have surfaced in other psychedelic therapy programs, including those affiliated with recognized names like the Multidisciplinary Association for Psychedelic Studies (MAPS). In 2021, hundreds of practitioners and advocates signed an open letter calling for stronger accountability and transparency in the field.

Training curricula frequently lack robust discussion of boundaries, trauma-informed care, and the ethics of consent—despite the fact that patients on psychedelics are uniquely susceptible to suggestion. Some programs focus more on spiritual ritual than science, and facilitators often encourage participants to override their own instincts—sometimes with devastating results. In one example, a psychologist named Joan asked to opt out of dosing due to mental health struggles, only to be pressured into participation, leading to a psychiatric hospitalization.

Financially, would-be healers pay tens of thousands for training and ceremonial weekends, only to discover risks to their safety and professional reputations. The collapse of EAST, which recently filed for bankruptcy amid scandals and litigation, illustrates how quickly such ventures can unravel—leaving harmed clients and trainees behind.

Investor Interest and the Path Forward

Despite the cautionary tales, investor interest remains high. Venture capitalists are backing psychedelic startups in anticipation of further legalization and regulatory approval. Analysts predict strong growth in North America and Europe, especially as pharmaceutical companies advance late-stage clinical trials for psilocybin and MDMA-based therapies. According to Grand View Research, the psychedelic drugs market could see a compound annual growth rate (CAGR) of over 13% through 2030.

But advocacy groups and professionals warn that sustainable growth depends on addressing the current oversight vacuum. Lessons from the history of Western medicine suggest the need for standardized curricula, independent licensing boards, and clear guidelines on ethical conduct and trauma-sensitive care. The U.S. Food and Drug Administration (FDA) is currently evaluating psilocybin as a “breakthrough therapy” for depression—putting further pressure on both the industry and policymakers to act.

Toward a Professionalized Future

The future of psychedelic medicine holds great promise for millions suffering from conditions like PTSD, addiction, and anxiety resistant to conventional treatments. However, patients deserve robust safeguards and practitioners require clear standards. Leading researchers and survivor groups are calling for regulation akin to other areas of healthcare—ensuring vulnerable participants are protected from coercion and exploitation, and that therapy is delivered with both scientific rigor and ethical guidance.

As Tim reflects, the challenge lies in balancing enthusiasm for new therapeutic frontiers with the hard-won lessons of ethical, evidence-based care. “I still believe this is the future of medicine,” he says. “But you can’t just have some tech guy walk in and call himself a shaman.”