South Dakota Crypto Investor Charged With $20M Ponzi Scheme on 29 Counts

According to BlockBeats, on July 18, a federal grand jury indicted 43-year-old Benjamin Paul Wiener of Sioux Falls, South Dakota on 29 counts including wire fraud, money laundering, bank fraud, and aggravated identity theft, involving approximately $20 million. Prosecutors allege Wiener controlled eight entities, solicited investments through false statements, and operated a Ponzi scheme by transferring funds through banks and crypto exchanges before using proceeds for personal expenses and recruiting new investors to pay earlier victims.

Wiener also faces charges for fraudulently obtaining a $1 million line of credit in April 2025 through forged documents and stolen identity information. He has pleaded not guilty and was released on bail; trial is scheduled for September 15. Wire fraud and money laundering carry maximum penalties of 20 years imprisonment, bank fraud up to 30 years, and aggravated identity theft includes mandatory consecutive sentences of at least 2 years.