A crypto investor from South Dakota has been accused of a massive $20 million scheme: 29 counts of fraud.
A federal grand jury has indicted 43-year-old Benjamin Paul Wiener from Sioux Falls, South Dakota. He is charged with 29 counts in connection with an alleged fraudulent scheme that caused victim investors to lose approximately $20 million.
Wiener is charged with wire fraud, money laundering, bank fraud, and aggravated identity theft. Last week, he pleaded not guilty and was released on bail pending trial, scheduled for September 2026.
How was the pyramid scheme organized?
According to the investigation, Wiener raised funds, including in cryptocurrency, through a network of eight companies under his control. Most of them bore the name "Benaiah" — Benaiah Capital LLC and Benaiah Digital LP, as well as Aslan Management LLC and Runway Four10. He misled investors by making false statements about returns and guarantees.
The scheme, according to prosecutors, resembled a classic financial pyramid: when funds ran out or investors demanded returns, Wiener recruited new participants, using their money to pay off earlier investors and cover personal expenses. The victims are located in South Dakota and Minnesota.
Money laundering was carried out through both bank accounts and cryptocurrency exchanges. Counter-flows of fiat and digital assets helped disguise the origin of the funds and their true owner.
Bank fraud and document forgery
A separate count 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.
It is important to emphasize: all charges remain only the prosecution's version for now. Wiener is presumed innocent until the court's verdict. The hearing is scheduled for September 15, 2026.
This case adds to a growing list of investment fraud proceedings where cryptocurrency is used to withdraw funds. In 2025, the U.S. Department of Justice brought similar charges against 265 defendants, estimating total losses at over $16 billion.
My comment as an analyst: This case is another reminder that classic financial pyramids are successfully migrating into the crypto sphere, using digital assets to complicate transaction chains. Investors should be extremely critical of projects promising guaranteed returns and verify the legal structure of companies, especially if they are registered in jurisdictions with low levels of regulation.