Hawaiʻi securities regulators have moved to pull the plug on what they say looks like a cryptocurrency-fueled pyramid scheme, issuing a cease-and-desist order that targets BG Wealth Sharing Ltd. and two local promoters. The preliminary order seeks $50,000 in administrative penalties from each respondent and asks for a permanent ban on their securities activities in the islands. Investigators say the group tapped a crypto platform and recruitment incentives to reel in local investors, pitching the deal at neighborhood gatherings and online sessions.
The preliminary order, signed May 6 by Commissioner of Securities Ty Y. Nohara, names BG Wealth Sharing LTD, Cranci Ilima Luci Hoopai and Ligaya Joy Arcenas as respondents, according to the State of Hawaiʻi Department of Commerce and Consumer Affairs. Regulators allege the trio offered and sold unregistered securities to Hawaiʻi residents through a crypto platform, staging promotional presentations around the state. The order also spells out the respondents’ right to request a hearing while seeking a $50,000 administrative penalty against each one.
Federal Seizure And Frozen Crypto
Once investor withdrawals started getting blocked and operators began shifting funds around, U.S. law enforcement moved in. A BG Wealth web domain was seized, and coordinated action by exchanges and security teams froze roughly $41.5 million linked to the project, according to Cointelegraph. On-chain analysts say more than $92 million was pushed across several blockchains in late April in what appeared to be an effort to muddy the money trail. The takedown and asset freezes follow months of warnings from regulators in multiple countries about BG Wealth and its associated trading operation.
How It Pitched To Neighbors
State filings and local coverage describe pitch sessions held around the islands, including an April meeting of about 40 to 50 people at the Nānākuli Public Library. There, a presenter claimed a $500 deposit could unlock lifetime benefits and suggested participants could become millionaires within months, according to Hawaii News Now. Trainers leaned on videos, webinars and social media to promote a recruitment structure that paid commissions for signing up new members. Former prosecutor Randal Lee told reporters those kinds of promises are not realistic and warned that schemes like this can race through tight-knit communities once trust is established.
What Regulators Advise And How To Report
The state notice urges anyone who was approached or who put money into BG Wealth to contact the Securities Enforcement Branch’s tip line; the DCCA lists the scam line as 1-877-HI-SCAMS (1-877-447-2267), according to the same release. The preliminary administrative order seeks civil penalties and a permanent injunction but can still be challenged by the named respondents, consistent with the DCCA announcement. Potential victims are also told to preserve all records and consider filing a report with federal authorities such as the FBI Internet Crime Complaint Center (IC3).
Officials say the case is yet another reminder that pitches touting daily returns and big payouts tied to recruiting new members are classic hallmarks of Ponzi-style operations. Regulators and investigators are now focused on tracing the money trail and determining whether criminal charges will follow.
