Crypto
State issues cease-and-desist to halt suspected crypto pyramid scheme in Hawaii
HONOLULU (HawaiiNewsNow) – State officials ordered BG Wealth Sharing and two women to stop soliciting investors, as federal investigators also move in on what some authorities describe as a cryptocurrency pyramid scheme.
BG Wealth Sharing has been operating in Hawaii with small initial investments, promises of wealth and incentives for recruiting new members, according to state regulators.
Joy Arcenas, who is from California, posted a video in January saying she was in Honolulu to do training for top leaders and members. Her Instagram includes posts of BG investment parties across the West, where people hear a story that started with $333.
“That $333 brought me to a level seven at $4,100 a day and now with $30,000 a month,” Arcenas said in the video.
Regulators said Arcenas also hosted Zoom webinars to help investors, many of whom appeared confused about cryptocurrency rules and how to cash in their investments.
Her internet posts indicate she hosted multiple meetings in Hawaii. A woman who emailed Hawaii News Now said the scheme is spreading in the Filipino American community across Hawaii and that a relative is influencing other members of her family, including an elderly mother, into investing.
The woman said many people lost their hard-earned money.
“It’s sad that something like this is actually continuing to happen,” said Randal Lee, a former judge and prosecutor.
Lee said it is not the first time pyramid schemes have targeted the Filipino community.
“You have to stop it immediately because it will grow like wildfire if you do not stop it,” Lee said.
State securities investment regulators served Arcenas, BG Wealth Sharing and a local woman named Cranci Ilima Luci Hoopai with a cease-and-desist order.
The order describes a meeting of 40 to 50 people at Nanakuli Library in April, where investigators said Arcenas claimed $500 was enough to earn benefits for a lifetime and people could be millionaires in 11 months if they worked hard to sign up and train new members.
Hoopai used testimonials from her own family to prove the investments were legitimate, according to the order.
“But the red flag should be that if you’re going to become a millionaire within 11 months, that’s totally unrealistic,” Lee said.
The order directs BG Wealth Sharing, Arcenas and Hoopai to stop soliciting investors. State regulators also ordered each to pay $50,000 for failing to register as securities brokers.
Federal authorities are also moving in on the mainland company. In recent days, the company’s website was seized under a federal warrant by the Department of Justice. There are also reports the company’s mainland bank accounts have been frozen.
“I love BG with all my might and protect BG with all your heart,” Arcenas said in a video.
Lee said investors who recruited friends and family are often warned by scammers that they could be prosecuted if they talk. He said that is not usually true. Investors who believed the scheme was legitimate would most likely be treated as victims.
Copyright 2026 Hawaii News Now. All rights reserved.
Key Takeaways
- U.S. strikes in Iran and IRGC retaliation in Kuwait threatened Qatar peace talks on Thursday.
- Bitcoin fell 3.6% to $72,622, wiping out $870 million in total long positions over 24 hours.
- The escalation will likely torpedo future diplomacy and embolden anti-settlement hardliners.
Geopolitical Escalation Triggers Crypto Sell-off
Bitcoin plunged below $73,000 early Thursday following reports of fresh U.S. military strikes inside Iran. Market data shows bitcoin tumbled to a multi-week low of $72,622—its lowest level since April 13—before staging a modest recovery back to $73,000. This downturn continues a weekly bearish trend, contrasting sharply with broader global markets that had previously rallied on optimism for a permanent peace agreement between the U.S. and Iran.
The sharp decline pushed bitcoin’s daily losses to 3.6%, dragging its market capitalization down to $1.46 trillion and pulling the aggregate crypto market cap below the $2.6 trillion threshold. Since May 25, when bitcoin last attempted to test the $78,000 resistance level, the asset has shed over 6% of its value. Despite kicking off May on an upward trajectory, this latest price action positions the cryptocurrency to close the month in the red.
Retaliatory Strikes Threaten Peace Talks
According to reports, the latest U.S. military strikes targeted a strategic site in the Iranian port city of Bandar Abbas. In retaliation, Iran’s Islamic Revolutionary Guard Corps (IRGC) reportedly launched strikes against a U.S. military base in Kuwait, where local authorities confirmed that air defense systems engaged incoming missiles and drones.
This escalation comes just days after the U.S. military struck Iranian naval vessels and an alleged missile launch site in Bandar Abbas, citing self-defense. Iranian forces responded at the time by downing U.S. drones. Notably, these hostilities unfolded while U.S. and Iranian negotiators were actively convening in Qatar to finalize a peace agreement. While the Trump administration initially downplayed the earlier friction to keep diplomatic channels open, this latest exchange will likely torpedo the talks and embolden hardliners on both sides who oppose a negotiated settlement.
Meanwhile, the decline in bitcoin and the broader cryptocurrency market resulted in the liquidation of more than $930 million in leveraged positions. Coinglass data showed that liquidations on bitcoin alone topped $366 million, with wiped-out long bets accounting for $348 million of that total. Overall, the market saw $870 million in long positions wiped out over 24 hours.
Bitcoin Slips to $74,530 as Long Traders Face $106M Wipeout
Bitcoin trended downward on Wednesday, dropping beneath the $75,000 threshold to trade at $74,570 at the time of writing. This…
Bitcoin Slips to $74,530 as Long Traders Face $106M Wipeout
Bitcoin trended downward on Wednesday, dropping beneath the $75,000 threshold to trade at $74,570 at the time of writing. This…
Bitcoin Slips to $74,530 as Long Traders Face $106M Wipeout
Bitcoin trended downward on Wednesday, dropping beneath the $75,000 threshold to trade at $74,570 at the time of writing. This…
HOLYOKE, Mass. (WWLP) – The Holyoke Police Department recently prevented a resident from falling victim to a Bitcoin scam and is urging community members to remain cautious of cryptocurrency fraud.
Holyoke Police Chief Brian Keenan stated that this recent scam involved a caller stating over the phone that the person had an active arrest warrant for missing jury duty. The scammer claimed that if the victim owed $6,000 or they would be at risk of arrest.
The victim was then instructed to withdraw money from a bank and take it to a local Bitcoin kiosk to deposit it. After depositing some money, the victim realized they were being scammed and called the Holyoke Police Department.
Detective James Parnell assisted the resident and canceled the transaction before it closed out. The victim is expected to receive a refund from the kiosk operator. In most cases involving these types of transactions, the money cannot be recovered, as it can be processed within minutes.
Holyoke Police say that these types of Bitcoin scams have defrauded western Massachusetts residents of more than $2 million in the past two to three years. If you receive a phone call claiming you owe money and must deposit cash into a Bitcoin kiosk, you are urged to immediately hang up.
Local News Headlines
WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Download the 22News Plus app on your TV to watch live-streaming newscasts and video on demand.
Key Takeaways
- Sharplink and Forward join Russell indexes on June 29 with ETH and SOL treasury bets.
- Sharplink holds 874,351 ETH worth $1.8B, above its $1.22B market cap valuation.
- Russell inclusion may boost liquidity and institutional access for crypto treasury firms.
Crypto Treasury Firms Go Mainstream With Russell Index Inclusion
Sharplink Gaming is set to join the Russell 2000 and Russell 3000 indexes, marking a fresh milestone for publicly traded crypto treasury companies seeking wider acceptance in traditional equity markets.
The ethereum-focused firm disclosed that its inclusion will take effect on June 29, when Russell’s semiannual index reconstitution is implemented. The move places Sharplink inside two widely tracked U.S. equity benchmarks used by fund managers, exchange-traded funds and institutional investors.
Chief Executive Officer Joseph Chalom said the listing validates the company’s Ethereum treasury strategy.
Joining the Russell 2000 and Russell 3000 is a meaningful validation of Sharplink’s institutional-grade ETH treasury strategy, and we believe will broaden SBET’s shareholder base while strengthening our access to capital markets.
Sharplink holds 874,351 ETH, worth about $1.8 billion at current prices cited by the company. Even so, its shares trade below the value of its ethereum holdings. The company’s market capitalization stood at roughly $1.22 billion at the close of trading on Tuesday, May 26.
Sharplink’s index entry follows a similar step by Bitmine Immersion Technologies, the largest ethereum treasury company. Bitmine will be added to the Russell 1000, an index that tracks the 1,000 largest U.S. companies by market value.
Forward Industries, another crypto treasury firm, will also be added to the Russell 2000 and Russell 3000. The company has shifted from medical design into a solana-focused treasury strategy.
Forward bought $1.58 billion of SOL last year at an average price of about $232 per token. Solana has since fallen to $83.78, leaving the position down about 64% from the purchase price.
The company’s SOL holdings are now valued at around $588 million. That remains well above Forward’s market capitalization of about $350 million. At that level, Forward is still roughly 2.4 times larger than the Russell 2000’s smallest member, based on data from the index provider’s website.
Forward CEO Ryan Navi said the company expects index inclusion to broaden its investor base, improve liquidity, and raise its profile with long-term institutions.
Together, the additions show how crypto treasury firms are moving further into mainstream equity benchmarks. Russell indexes are tied to more than $12.2 trillion in benchmarked assets and investments, giving the included companies a larger stage even as questions remain over how markets should value their token-heavy balance sheets.
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