A crypto investor from South Dakota is accused in a massive $20 million scheme: 29 counts of fraud and money laundering
A federal grand jury has indicted 43-year-old Benjamin Paul Wiener, a crypto investor from Sioux Falls, South Dakota. He is charged with 29 counts in connection with an alleged fraudulent scheme that resulted in victims losing approximately $20 million. The charges cover a wide range of violations: wire fraud, money laundering, bank fraud, and aggravated identity theft.
Last week, Wiener pleaded not guilty. The judge ordered his release on bail pending trial, which is tentatively scheduled for September.
Scheme with eight companies and a classic pyramid
According to the indictment, Wiener raised funds, including in cryptocurrency, through a network of eight companies under his control. Most of them bore the name "Benaiah" — specifically, Benaiah Capital LLC and Benaiah Digital LP. The list also includes Aslan Management LLC and Runway Four10. The prosecution alleges that investors were misled by false statements about returns and strategies.
The prosecution characterizes this scheme as a classic financial pyramid. Once funds ran out or a depositor demanded a return, Wiener recruited new participants. He used the money from the latter to pay off previous investors and cover personal expenses. According to the investigation, money laundering was conducted through both bank accounts and cryptocurrency exchanges, which allowed the concealment of the origin of the funds and the true owner.
"According to authorities, the damage from Wiener's actions amounted to nearly $20 million," states a press release from the U.S. Department of Justice.
Bank fraud and document forgery
A separate episode involves defrauding a bank in Sioux Falls. In April 2025, Wiener opened a $1 million line of credit by forging documents and using another person's personal data without their knowledge. All charges remain allegations for now: Wiener is presumed innocent until a court verdict. The hearing is scheduled for September 15, 2026.
Wiener's case adds to a series of increasing prosecutions for investment fraud and the use of cryptocurrency to launder funds. In 2025, the U.S. Department of Justice brought similar charges against 265 defendants, estimating total damages at over $16 billion.
Expert opinion: This story is yet another reminder that cryptocurrency, for all its innovativeness, remains an ideal tool for financial pyramids as old as time. Investors must exercise extreme caution: if you are promised guaranteed returns above market rates, and the company's structure is opaque, you are likely dealing with fraud. Regulators are clearly tightening control, and 2025 could be a record year for exposing such schemes.