Federal prosecutors have indicted Benjamin Paul Wiener, 43, a Sioux Falls crypto investor with 29 counts related to an alleged fraud scheme estimated to have cost victims approximately $20 million. According to the Department of Justice, Wiener appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10, where he pleaded not guilty to all charges. The charges include wire fraud, money laundering, bank fraud, and aggravated identity theft. As reported by the DOJ, Wiener allegedly persuaded investors to place money into several cryptocurrency-focused investment companies by making false promises and misleading representations about investment opportunities. The DOJ alleges the transactions were intended to conceal fraud proceeds while allowing Wiener to spend investor money on personal expenses.
The DOJ alleges that Wiener obtained money from investors before allegedly transferring those funds through multiple financial institutions and cryptocurrency exchanges in an effort to disguise their source and ownership. The scheme affected dozens of victims across South Dakota, Minnesota, and neighboring states, with Wiener allegedly moving collected funds through banks and cryptocurrency exchanges to hide their source and ownership. According to federal investigators, the Benaiah entities collected roughly $25.1 million from investors, with prosecutors alleging that around $12 million was returned to investors likely in the form of fabricated "returns" designed to keep the scheme running. However, approximately $5.7 million was transferred directly to Wiener for personal use, demonstrating the classic Ponzi scheme structure where funds from new investors were used to repay earlier backers and cover personal expenses. The government estimates total investor losses at approximately $20 million, impacting dozens of victims across multiple states.
According to the indictment, Wiener allegedly operated the scheme through eight entities, most carrying the 'Benaiah' name, including Benaiah Capital LLC and Benaiah Digital LP. The list also included Aslan Management LLC and Runway Four10. Beyond the investment fraud allegations, prosecutors also accuse Wiener of fraudulently obtaining a $1 million line of credit from a Sioux Falls financial institution in April 2025. According to the DOJ, Wiener allegedly submitted falsified financial documents and correspondence while using another individual's personal identifying information without authorization. Those allegations form the basis of the bank fraud and aggravated identity theft charges included in the indictment. The alleged fraud wasn't limited to misleading investors about returns - by mid-2025, investor complaints were piling up and liquidity was drying out, leading to the appointment of a receiver by August 2025 to investigate the Benaiah entities.
If convicted, Wiener faces up to 20 years in prison on the wire fraud and money laundering charges, up to 30 years for bank fraud, and a mandatory consecutive two-year sentence for aggravated identity theft. The charges remain accusations, and Wiener is presumed innocent unless proven guilty in court. His trial is currently scheduled to begin on September 15, 2026. The investigation was led by IRS Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), and the U.S. Attorney's Office for the District of South Dakota. The Wiener case adds to a growing list of cryptocurrency-related prosecutions pursued by the Justice Department this year, highlighting how federal investigators are increasingly focusing on cryptocurrency-related fraud, money laundering, and cyber-enabled financial crime. Multiple investor lawsuits have been filed since mid-2025, with victims spanning South Dakota and Minnesota.
