TL;DR
- A South Dakota investor was indicted on 29 counts for an alleged $20 million scheme involving fraud, money laundering, and identity theft.
- Benjamin Paul Wiener used funds from new investors to pay older ones and cover personal expenses through crypto exchanges.
- The trial is set for September 15, 2026; the combined maximum sentence could exceed 30 years in prison.
A federal grand jury indicted Benjamin Paul Wiener, a 43-year-old investor based in Sioux Falls, South Dakota, for allegedly orchestrating a fraudulent scheme of approximately $20 million.
The charges include wire fraud, money laundering, bank fraud, and aggravated identity theft. The United States Department of Justice reported that the indictment comprises 29 counts and that Wiener appeared before federal magistrate judge Veronica L. Duffy on July 10, at which time he pleaded not guilty.
According to the indictment, Wiener allegedly induced dozens of victims from South Dakota, Minnesota, and the surrounding region to invest money and digital assets in a series of companies under his control, through false statements and fraudulent misrepresentations. Among the entities used are Benaiah Capital LLC, Benaiah Digital Fixed Income LP, and Runway Four10, among others.
The Ponzi Scheme Used to Attract Investors
Prosecutors contend that, once the funds were obtained, Wiener moved them through financial institutions and cryptocurrency exchanges to conceal the origin, ownership, and destination of the money, diverting the resources toward his personal expenses. When the funds ran out or an investor demanded the return of their capital, the defendant sought new contributors to cover those payments, a dynamic characteristic of Ponzi schemes.
The indictment also notes that, in April 2025, Wiener obtained a credit line of $1,000,000 from a bank in Sioux Falls through falsified documentation and used, without authorization, the personal identification information of a third party.
If found guilty, he would face up to 30 years in prison and a $1,000,000 fine on the bank fraud count, up to 20 additional years for each count of wire fraud and money laundering, plus a mandatory consecutive term of two years for aggravated identity theft. The investigation is being conducted by IRS Criminal Investigation, the FBI, and the Office of the United States Attorney. The trial is scheduled for September 15, 2026.
