Hawaii State Issues Cease-and-Desist Order to Halt Suspected Cryptocurrency Pyramid Scheme
HONOLULU – May 7, 2026 – Hawaii state officials have taken strong action against BG Wealth Sharing, a suspected cryptocurrency pyramid scheme operating within the islands. The state Securities Division has issued a cease-and-desist order directed at BG Wealth Sharing and two associated individuals, aiming to halt their solicitation of investors. Federal authorities are also intensifying their investigation into the scheme, underscoring concerns over its operation and impact.
The Scheme and Promises of Wealth
BG Wealth Sharing has been active in Hawaii, enticing residents with promises of wealth through small initial investments. The company allegedly incentivizes members to recruit new participants, a hallmark of pyramid schemes, raising red flags for regulators.
Among those connected to BG Wealth Sharing is Joy Arcenas, a California resident who publicly promoted the venture. In a January video posted on social media, Arcenas described her presence in Honolulu to conduct training sessions for top leaders and members of the group. According to her statements, an initial investment starting at $333 could potentially elevate a participant to a “level seven” income, claiming daily earnings of $4,100 and monthly returns reaching $30,000. Arcenas also reportedly led several Zoom webinars designed to assist investors who appeared confused about the complexities of cryptocurrency investments and the logistics of cashing out their earnings.
Community Impact and Spread
The scheme has notably affected Hawaii’s Filipino American community, with reports of wide-reaching influence within families. A local resident shared concerns with Hawaii News Now, revealing that the scheme has ensnared relatives, including elderly family members, leading to significant financial losses.
Randal Lee, a former judge and prosecutor, expressed serious apprehension about the pattern of pyramid schemes targeting the Filipino community in Hawaii. “It’s sad that something like this is actually continuing to happen,” Lee said, warning that if left unchecked, such schemes can spread rapidly like wildfire.
Cease-and-Desist Order Details
The cease-and-desist order cites specific activities, including a recent gathering of 40 to 50 individuals at the Nanakuli Library in April. At this event, Arcenas reportedly claimed that a $500 investment guaranteed lifetime benefits, with promises that hardworking participants could become millionaires within 11 months by recruiting and training new members.
Additionally, a local woman named Cranci Ilima Luci Hoopai is implicated for using testimonials from her own family members to convince others of the legitimacy of the investments. Regulators emphasize that these claims conflict with realistic financial outcomes, with Lee noting, “If you’re going to become a millionaire within 11 months, that’s totally unrealistic.”
The cease-and-desist order requires BG Wealth Sharing, Arcenas, and Hoopai to immediately stop soliciting investors. Each has also been ordered to pay $50,000 in fines for failure to register as securities brokers, violating state law.
Federal Actions and Warnings
Federal authorities have escalated their crackdown against BG Wealth Sharing on the mainland. The Department of Justice recently seized the company’s website under a federal warrant, and reports indicate that its bank accounts have been frozen. These moves align with broader efforts to dismantle fraudulent cryptocurrency schemes nationwide.
Despite these warnings, Arcenas continues to publicly endorse BG Wealth Sharing, urging followers in one video to “love BG with all my might and protect BG with all your heart.”
Randal Lee highlighted the psychological pressure often exerted on investors who recruit family and friends, noting that scammers may threaten them with prosecution if they speak out. He clarified that these warnings are usually baseless, and most investors who believed in the scheme are more likely to be treated as victims, not perpetrators.
Consumer Advisory
State officials urge anyone approached to invest in BG Wealth Sharing or similar ventures to exercise extreme caution. Individuals with questions or who suspect they have been targeted by investment fraud are encouraged to contact Hawaii’s securities regulators for guidance.
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