Federal Prosecutors Say This Sioux Falls Crypto Investor Ran a $20 Million Fraud
A federal grand jury indicted Sioux Falls crypto investor Benjamin Paul Wiener, 43, on 29 counts tied to an alleged fraud scheme that prosecutors estimate value victims roughly $20 million.
The fees embrace wire fraud, cash laundering, financial institution fraud, and aggravated id theft. Wiener pleaded not responsible on July 10 and was launched on bond forward of a September trial.
This Crypto Investor Allegedly Turned Dozens Into Fraud Victims
According to the indictment, Wiener solicited each cash and digital currency from investors by means of his firms. He allegedly made false statements and fraudulent representations.
Dozens of victims throughout South Dakota and Minnesota have been affected, prosecutors mentioned. After amassing funds, Wiener allegedly moved the cash to cover its supply and possession.
Prosecutors describe a construction frequent to Ponzi instances. When funds ran low or an investor sought a refund, Wiener allegedly recruited new traders. He then used that contemporary cash to repay earlier backers and canopy private bills.
The laundering allegedly ran by means of each banks and cryptocurrency exchanges. This blended move of fiat and crypto helped conceal the exercise, in keeping with the federal government.
“As a results of Wiener’s conduct, the federal government alleges the estimated whole loss is roughly $20 million,” the press launch reads.
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Entities and Bank Fraud
Wiener allegedly operated the scheme by means of eight entities. Most carried the “Benaiah” title, together with Benaiah Capital LLC and Benaiah Digital LP. The listing additionally included Aslan Management LLC and Runway Four10.
Separately, prosecutors allege Wiener defrauded a Sioux Falls financial institution. In April 2025, he secured a $1 million credit score line by falsifying paperwork, in keeping with the indictment. He allegedly used one other individual’s figuring out info with out permission to take action.
The fees stay accusations, and Wiener is presumed harmless except confirmed responsible. His trial is about for September 15, 2026.
The case joins a rising listing of federal prosecutions concentrating on operators who allegedly defrauded traders and used crypto to move the proceeds. The Justice Department charged 265 fraud defendants in 2025, with meant losses topping $16 billion.
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