Benjamin Paul Wiener, 43, of Sioux Falls, South Dakota, was indicted on 29 counts of wire fraud, money laundering, bank fraud and aggravated identity theft in connection with an alleged $20 million cryptocurrency investment fraud. Wiener appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10 and pleaded not guilty. Federal prosecutors allege Wiener persuaded victims to invest money and digital assets through eight companies he controlled by making false statements about the investments and how funds would be used, then used new investor money for personal expenses and to repay earlier investors. The alleged scheme affected dozens of people in South Dakota, Minnesota and elsewhere in the region. The case represents the latest federal prosecution targeting cryptocurrency-related investment fraud involving misrepresentation and misappropriation of client funds.
Prosecutors Allege New Investor Funds Repaid Earlier Clients
The indictment describes a structure resembling a Ponzi scheme, according to the U.S. Attorney's Office for the District of South Dakota. Prosecutors allege that Wiener solicited additional investments when available funds ran low and used money from newer investors to repay earlier participants. After receiving funds, Wiener allegedly moved money through banks and cryptocurrency exchanges to conceal its source, ownership and location. Prosecutors claim he spent investor assets on personal expenses and sought new clients when previous funds were depleted or an investor asked for money to be returned. The government estimates that the alleged conduct caused approximately $20 million in losses.
Eight Entities Named in Alleged Investment Scheme
Prosecutors said Wiener allegedly used eight entities to solicit investments and conduct the disputed transactions: Benaiah Capital LLC, Benaiah Holdings, Inc., Benaiah Digital Fixed Income LP, Benaiah Digital LP, Benaiah Management Company, Inc., Benaiah Enterprises, LLC, Aslan Management, LLC, and Runway Four10. The government alleges that Wiener used the entities as part of the fraud and money laundering scheme rather than maintaining genuine separation between investor assets and his personal spending. The indictment may require prosecutors to distinguish between losses caused by investment performance and losses caused by alleged misappropriation.
Wiener Allegedly Obtained $1 Million Bank Loan Through Falsified Documents
The criminal case includes a separate allegation involving a Sioux Falls financial institution. In April 2025, Wiener allegedly obtained a $1 million line of credit by submitting falsified documents, information and correspondence to the bank. Prosecutors also claim he used another person's identifying information without permission as part of the application. That alleged conduct supports the bank fraud and aggravated identity theft charges. Bank fraud carries a maximum sentence of 30 years in prison and a fine of up to $1 million. A conviction for aggravated identity theft carries a mandatory two-year prison term that must be served consecutively to any sentence imposed for the other offenses.
IRS Criminal Investigation Traces Funds Across Financial Institutions
The investigation is being conducted by IRS Criminal Investigation, the FBI and the U.S. Attorney's Office. IRS Criminal Investigation said its role covers the tracing of funds associated with fraud, money laundering, tax offenses and other financial crimes. The agency's investigators specialize in following transactions through financial accounts and identifying attempts to hide ownership or the origin of money. Investigators can combine blockchain records with information obtained from exchanges, banks and payment providers to identify the people or companies controlling particular accounts and wallets.
Alleged Scheme Affected Dozens of Investors in South Dakota and Minnesota
The government has not publicly identified the alleged victims or disclosed the amount invested through each Benaiah-related entity. It said the conduct affected dozens of people, including residents of South Dakota and Minnesota. The regional nature of the allegations is notable because private investment schemes often spread through professional, family, religious or community relationships rather than public advertising. Prosecutors may seek restitution if Wiener is convicted. Restitution orders are intended to compensate victims for provable losses, but the amount ultimately recovered depends on what assets remain available and can be seized or forfeited.
Wiener Released on Bond With Trial Scheduled for September 15, 2026
Wiener has been released on bond pending trial. His trial is currently scheduled to begin on September 15, 2026. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case. The indictment contains allegations rather than findings of guilt. Wiener is presumed innocent unless prosecutors prove the charges beyond a reasonable doubt. Each wire fraud and money laundering offense carries a maximum sentence of 20 years in prison and a fine of up to $250,000.
FAQ
What charges does Benjamin Paul Wiener face in South Dakota?
Benjamin Paul Wiener was indicted on 29 counts of wire fraud, money laundering, bank fraud and aggravated identity theft. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10 and pleaded not guilty.
How much money was allegedly lost in the investment scheme?
The government estimates that the alleged conduct caused approximately $20 million in losses. Prosecutors allege Wiener used money from newer investors to repay earlier participants and spent investor assets on personal expenses.
When is Benjamin Paul Wiener's trial scheduled?
Wiener's trial is currently scheduled to begin on September 15, 2026. He has been released on bond pending trial. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
