Hawaii Authorities Issue Cease-and-Desist to Halt Suspected Crypto Pyramid Scheme
By Daryl Huff, May 7, 2026
HONOLULU — State officials in Hawaii have taken decisive action against BG Wealth Sharing, a suspected cryptocurrency pyramid scheme operating in the islands. The Hawaii Department of Commerce and Consumer Affairs (DCCA) issued a cease-and-desist order to BG Wealth Sharing and two women associated with the operation, aiming to halt their solicitation of new investors amid growing concerns about deceptive practices.
According to the state securities regulators, BG Wealth Sharing has been active in Hawaii by accepting small initial investments with promises of substantial wealth gains. The scheme also incentivizes participants to recruit new members, a hallmark characteristic of pyramid operations.
Promises of Wealth and Recruitment Incentives
One of the individuals named in the cease-and-desist order, Joy Arcenas, who is based in California, appeared prominently in the company’s operations. In a viral video posted in January, Arcenas discussed traveling to Honolulu to conduct training sessions for top leaders and members of BG Wealth Sharing.
Arcenas shared her own narrative of financial success with the scheme, claiming a starting investment of $333 eventually brought her to “level seven,” earning $4,100 daily and generating monthly returns of $30,000. These statements were made during events designed to recruit and train new investors.
The state regulators noted that Arcenas also hosted several Zoom webinars, ostensibly to assist participants — many of whom reportedly expressed confusion about cryptocurrency regulations and how to liquidate their investments.
Widespread Community Impact
Investigations reveal that the scheme has particularly spread within Hawaii’s Filipino American community. An anonymous woman reached out to Hawaii News Now, expressing concern that family members, including elderly relatives, were being drawn into the scheme and risking their savings. She lamented the financial losses suffered by many in the community.
Randal Lee, a former judge and prosecutor, warned about the scheme’s potential to cause rapid harm if left unchecked. “It’s not the first time pyramid schemes have targeted the Filipino community,” Lee said. “You have to stop it immediately because it will grow like wildfire if you do not stop it.”
Cease-and-Desist Details
The cease-and-desist order was also served to a local woman, Cranci Ilima Luci Hoopai, who has reportedly participated in promoting BG Wealth Sharing in Hawaii. Regulators described an April meeting at Nanakuli Library where 40 to 50 people gathered to hear promises that a $500 investment could secure lifetime benefits. Arcenas reportedly claimed attendees could become millionaires within 11 months by recruiting and training new members.
Hoopai allegedly used testimonials from her own family to validate the investments’ legitimacy. However, experts like Lee caution that such claims are unrealistic and should raise red flags for potential investors.
The DCCA order demands BG Wealth Sharing, Arcenas, and Hoopai cease soliciting new investors immediately. Each is also fined $50,000 for operating without registering as securities brokers in Hawaii.
Federal Authorities Take Action
State regulators are not the only authorities investigating BG Wealth Sharing. The U.S. Department of Justice has seized the company’s website under a federal warrant, and reports indicate the company’s bank accounts on the mainland have been frozen amid a separate federal inquiry.
Despite these actions, Arcenas posted videos urging followers to “love BG with all your might and protect BG with all your heart,” underscoring how engaged some participants remain.
Advice for Investors
Lee urged caution for those involved, stressing that often individuals who recruit family and friends are themselves victims, not perpetrators. He clarified, “Investors who believed the scheme was legitimate would most likely be treated as victims,” dispelling common myths about prosecution risks for participants.
Hawaii officials continue to monitor the situation closely, urging the public to be vigilant against investment opportunities that promise extraordinary returns with little risk.
For further information or to report potential scams, Hawaii residents can contact the Hawaii Department of Commerce and Consumer Affairs Securities Branch.
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