Federal prosecutors have charged a Sioux Falls, South Dakota, crypto investor with running an alleged fraud that they say cost dozens of victims about $20 million. A federal grand jury indicted Benjamin Paul Wiener on 29 counts, including wire fraud, money laundering, bank fraud and aggravated identity theft.
Court appearance and charges
Wiener, 43, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10 and pleaded not guilty. He had been indicted the previous month and was released on bond. His trial is scheduled to begin on Sept. 15.
According to prosecutors, the case involves victims in South Dakota and Minnesota. The indictment alleges that Wiener used materially false statements to persuade people to hand over cash and digital assets to companies under his control.
How the alleged scheme worked
After receiving investor funds, Wiener allegedly moved the money through banks and cryptocurrency exchanges in an effort to conceal its source, ownership and control. Prosecutors further allege that he then used some of the money for personal expenses.
The government says the operation relied on a familiar pattern when funds became tight or clients sought redemptions. At those points, Wiener allegedly brought in new investors and used their money to pay earlier ones. Prosecutors describe that arrangement as the structure of a Ponzi scheme.
The indictment also alleges that Wiener used eight entities, including several limited liability companies, as vehicles in the scheme.
Separate bank fraud allegation
One of the counts focuses on dealings with a Sioux Falls financial institution. Prosecutors allege that in April 2025, Wiener obtained a $1 million line of credit by submitting falsified documents and correspondence and by using another person's identifying information without authorization.
That allegation underpins the bank fraud and aggravated identity theft charges included in the indictment.
Potential penalties and investigation
If convicted, Wiener could face significant prison time. Wire fraud and money laundering each carry maximum sentences of up to 20 years, while bank fraud carries a maximum term of 30 years. The aggravated identity theft charge carries a mandatory minimum sentence of two years that must run consecutively to any other sentence.
The investigation is being handled by IRS Criminal Investigation and the FBI, working with the U.S. Attorney's Office.
The case remains at the indictment stage, and the allegations have not been proven in court. Wiener has entered a not guilty plea, with trial now set for mid-September.
Source: www.theblock.co