Federal prosecutors say Sioux Falls crypto investor Benjamin Paul Wiener used eight entities in an alleged fraud and money-laundering scheme, then moved investor funds by monetary establishments and cryptocurrency exchanges to hide their location, supply, possession, and management.
The federal government estimates the alleged losses at roughly $20 million throughout dozens of victims.
The Justice Division introduced on July 16 {that a} federal grand jury had indicted Wiener the earlier month on 29 counts involving wire fraud, cash laundering, financial institution fraud and aggravated id theft.
Wiener pleaded not responsible on July 10 earlier than U.S. Justice of the Peace Choose Veronica L. Duffy and was launched on bond pending trial. He’s presumed harmless until and till confirmed responsible, and his trial is scheduled for September 15.
In line with the indictment, Wiener made materially false statements and fraudulent representations to induce folks to speculate cash and digital foreign money together with his corporations. The alleged scheme affected victims all through the area, together with in South Dakota and Minnesota.
Prosecutors tied eight corporations to the alleged fraud and money-laundering scheme: Benaiah Capital LLC; Benaiah Holdings, Inc.; Benaiah Digital Mounted Earnings LP; Benaiah Digital LP; Benaiah Administration Firm, Inc.; Benaiah Enterprises, LLC; Aslan Administration, LLC; and Runway Four10.
The submitting names all eight however doesn’t spell out what position every performed in particular person transactions.
After receiving investor funds, Wiener allegedly moved the cash by varied monetary establishments and cryptocurrency exchanges to hide and disguise its location, supply, possession, and management. Prosecutors say he additionally managed and spent the funds on private bills.
When sufferer funds turned depleted, or an investor requested the return of an funding, Wiener allegedly sought new traders. The indictment says he then used new cash for private bills and to repay earlier traders.
Individually, the indictment alleges that Wiener obtained a $1 million line of credit score from a Sioux Falls monetary establishment in April 2025 by falsifying paperwork, data and correspondence.
Prosecutors additionally allege that he used one other particular person’s private figuring out data with out authorization to safe the credit score.
The Justice Division doesn’t determine the financial institution or the person whose data was allegedly used. Its launch additionally doesn’t join the credit-line proceeds to the estimated $20 million investor loss, leaving the bank-fraud and identity-misuse allegations as a definite a part of the 29-count case.
