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- Federal prosecutors allege a Sioux Falls investor orchestrated a $20 million crypto investment fraud scheme.
- The indictment includes 29 charges, including wire fraud, money laundering, bank fraud, and identity theft.
- The defendant has pleaded not guilty and is scheduled to stand trial on September 15, 2026.
A South Dakota cryptocurrency investor is facing a sweeping federal indictment after prosecutors accused him of orchestrating an alleged investment fraud that caused approximately $20 million in losses. The case highlights the continued scrutiny of crypto-related investment schemes as U.S. authorities intensify enforcement against financial fraud.
Federal prosecutors charged Benjamin Paul Wiener, 43, of Sioux Falls, with 29 criminal counts, including wire fraud, money laundering, bank fraud, and aggravated identity theft. Wiener pleaded not guilty during a court appearance on July 10 and has been released on bond ahead of his scheduled trial in September.
Alleged Crypto Investment Scheme Cost Victims Millions
According to the indictment, Wiener allegedly persuaded investors to provide both cash and cryptocurrency through several businesses under his control. Prosecutors claim he misrepresented investment opportunities and used deceptive statements to attract funding from dozens of individuals across South Dakota and Minnesota.
Authorities allege that instead of investing the funds as promised, Wiener redirected the money through a network of financial institutions and cryptocurrency exchanges to obscure where it originated and how it was being used.
Investigators estimate that the total losses tied to the alleged scheme reached around $20 million, making it one of the larger crypto-related fraud cases in the region.
Prosecutors Describe Ponzi-Like Structure
The government alleges the investment operation followed a pattern commonly associated with Ponzi schemes. Rather than generating legitimate investment returns, prosecutors say Wiener allegedly relied on incoming funds from new investors to repay earlier participants and satisfy withdrawal requests.
According to the indictment, investigators also believe portions of the money were used to finance personal spending, while transactions involving both traditional banking channels and digital assets allegedly helped conceal the movement of funds.
Eight Companies and Separate Bank Fraud Allegations
Federal prosecutors say the alleged scheme operated through eight different business entities. Several reportedly carried the “Benaiah” brand, including Benaiah Capital LLC and Benaiah Digital LP, alongside companies such as Aslan Management LLC and Runway Four10.
In a separate allegation, Wiener is accused of obtaining a $1 million line of credit from a Sioux Falls bank in April 2025 by submitting falsified documents. Prosecutors further allege he unlawfully used another individual’s identifying information during the loan application process.
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The indictment comes as the U.S. Department of Justice continues expanding its efforts against investment fraud involving digital assets. Federal authorities reported charging 265 fraud defendants during 2025, with alleged intended losses exceeding $16 billion, underscoring the government’s focus on large-scale financial crimes.
Also Read: Kraken Joins Federal Reserve Payment System – Bitcoin Soars: Key Takeaways
It is important to note that the indictment contains allegations only. Under U.S. law, Wiener is presumed innocent unless proven guilty in court. His trial is currently scheduled for September 15, 2026, where prosecutors will seek to prove the charges beyond a reasonable doubt.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
