U.S. federal authorities have charged 43-year-old Benjamin Paul Wiener, a resident of Sioux Falls, with 29 counts related to a large-scale fraudulent scheme. According to investigators, the damage from his actions exceeds $20 million. The case, set to be heard in court in September 2026, sheds light on how classic Ponzi schemes are adapting to the era of digital assets.
According to the indictment, Wiener attracted investor funds, including in cryptocurrency, through a network of eight controlled companies. Among them are Benaiah Capital LLC, Benaiah Digital LP, Aslan Management LLC, and Runway Four10. The investigation claims he misled depositors about returns and risks by making false statements. According to the prosecutor's office, the victims are located in South Dakota and Minnesota.
The mechanism of the scheme, investigators believe, was classic for a Ponzi scheme: funds from new participants were directed to pay off older investors and cover Wiener's personal expenses. When the flow of new investments dried up or a depositor demanded a return, the accused would attract additional victims.
Of particular interest is the method of money laundering. The prosecutor's office claims that Wiener used both traditional bank transfers and cryptocurrency exchanges. According to the prosecution, the intermingling of fiat money and digital currencies was intended to confuse the trail and conceal the true origin of the capital. In April 2025, he was also charged with bank fraud: allegedly forging documents and using others' personal data to open a $1 million credit line at a Sioux Falls bank.
The Wiener case is just one episode in a growing wave of prosecutions for crypto fraud in the United States. In 2025, the Department of Justice brought similar charges against 265 individuals, estimating total damages at over $16 billion. This clearly demonstrates that regulators are increasingly targeting hybrid schemes that combine traditional financial instruments and cryptocurrencies.
Expert opinion: The Wiener story is yet another reminder that cryptocurrency itself is neither a crime nor a panacea. It is merely a tool. As long as investors chase unrealistic returns without verifying counterparties, Ponzi schemes will thrive, disguised as innovations. The key risk here is not the technology, but human greed.