A South Dakota cryptocurrency investor has been charged with operating an alleged $20 million investment fraud in which money from new clients was used for personal spending and to repay earlier investors, according to the U.S. Attorney’s Office for the District of South Dakota.

Benjamin Paul Wiener, 43, of Sioux Falls, was indicted on 29 counts of wire fraud, money laundering, bank fraud and aggravated identity theft. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10 and pleaded not guilty.

Federal prosecutors allege that Wiener persuaded victims to invest money and digital assets through a group of companies he controlled by making false statements about the investments and how their funds would be used. The alleged scheme affected dozens of people in South Dakota, Minnesota and elsewhere in the region.

After receiving the funds, Wiener allegedly moved money through banks and cryptocurrency exchanges to conceal its source, ownership and location. Prosecutors claim he spent investor assets on personal expenses and sought new clients when previous funds were depleted or an investor asked for money to be returned.

The government estimates that the alleged conduct caused approximately $20 million in losses.

New Investor Money Allegedly Repaid Earlier Clients

The indictment describes a structure resembling a Ponzi scheme, although the government’s announcement does not formally label it as one. Prosecutors allege that Wiener solicited additional investments when available funds ran low and used money from newer investors to repay earlier participants.

Such a structure can continue while new money enters faster than existing investors request withdrawals. It becomes difficult to sustain when fundraising slows, losses accumulate or several clients seek repayment at the same time.

According to prosecutors, Wiener also transferred alleged fraud proceeds among financial institutions and cryptocurrency platforms to disguise who controlled the assets and how they had been obtained.

The use of digital assets does not make the alleged conduct a cryptocurrency trading offense in itself. The core accusations involve false representations to investors, misuse of entrusted funds and transactions intended to conceal alleged fraud proceeds.

Cryptocurrency exchanges are relevant because they can allow assets to be moved between bank accounts, digital wallets and different tokens. Investigators examining such activity typically reconstruct the flow of funds using bank records, exchange records and blockchain transactions.

Eight Companies Named in the Alleged Scheme

Prosecutors said Wiener allegedly used eight entities to solicit investments and conduct the disputed transactions:

  • Benaiah Capital LLC
  • Benaiah Holdings, Inc.
  • Benaiah Digital Fixed Income LP
  • Benaiah Digital LP
  • Benaiah Management Company, Inc.
  • Benaiah Enterprises, LLC
  • Aslan Management, LLC
  • Runway Four10

The number of entities could become important at trial because prosecutors will need to show how money moved between the companies, which entity accepted each investment and whether those transfers had legitimate business purposes.

Multiple affiliated companies are not inherently suspicious. Investment managers commonly operate separate funds, management companies and holding entities. The government alleges, however, that Wiener used the entities as part of the fraud and money laundering scheme rather than maintaining genuine separation between investor assets and his personal spending.

The indictment may also require prosecutors to distinguish between losses caused by investment performance and losses caused by alleged misappropriation. A failed investment does not by itself establish fraud. The government must prove that Wiener intentionally made material false statements or concealed important facts to obtain and control the funds.

Prosecutors Allege $1 Million Bank Loan Fraud

The criminal case includes a separate allegation involving a Sioux Falls financial institution.

In April 2025, Wiener allegedly obtained a $1 million line of credit by submitting falsified documents, information and correspondence to the bank. Prosecutors also claim he used another person’s identifying information without permission as part of the application.

That alleged conduct supports the bank fraud and aggravated identity theft charges. Bank fraud carries a maximum sentence of 30 years in prison and a fine of up to $1 million.

A conviction for aggravated identity theft carries a mandatory two-year prison term that must be served consecutively to any sentence imposed for the other offenses. The consecutive requirement means the two years cannot run at the same time as a wire fraud, money laundering or bank fraud sentence.

Each wire fraud and money laundering offense carries a maximum sentence of 20 years in prison and a fine of up to $250,000. The possible maximum penalties are statutory limits and do not indicate the sentence Wiener would receive if convicted.

Why IRS Criminal Investigation Is Involved

The investigation is being conducted by IRS Criminal Investigation, the FBI and the U.S. Attorney’s Office.

IRS Criminal Investigation said its role covers the tracing of funds associated with fraud, money laundering, tax offenses and other financial crimes. The agency’s investigators specialize in following transactions through financial accounts and identifying attempts to hide ownership or the origin of money.

That expertise has become increasingly important in cryptocurrency cases. Although digital assets can move outside traditional banks, transactions on public blockchains generally leave permanent records. Investigators can combine those records with information obtained from exchanges, banks and payment providers to identify the people or companies controlling particular accounts and wallets.

The presence of cryptocurrency can nevertheless make a case more complex when funds are moved through several exchanges, converted between assets or transferred to privately controlled wallets. Prosecutors must connect the technical transaction history to evidence showing knowledge, intent and control.

Dozens of Investors Allegedly Affected

The government has not publicly identified the alleged victims or disclosed the amount invested through each Benaiah-related entity. It said the conduct affected dozens of people, including residents of South Dakota and Minnesota.

The regional nature of the allegations is notable because private investment schemes often spread through professional, family, religious or community relationships rather than public advertising. Trust developed through personal connections can reduce the level of due diligence investors perform before transferring money.

The companies’ names and references to digital fixed income may also have given potential clients the impression that they were investing through a structured asset-management operation. The indictment will need to establish precisely what returns, custody arrangements, risk controls and uses of funds were represented to each investor.

Prosecutors may seek restitution if Wiener is convicted. Restitution orders are intended to compensate victims for provable losses, but the amount ultimately recovered depends on what assets remain available and can be seized or forfeited.

Wiener Released on Bond Ahead of September Trial

Wiener has been released on bond pending trial. His trial is currently scheduled to begin on September 15, 2026.

Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.

The indictment contains allegations rather than findings of guilt. Wiener is presumed innocent unless prosecutors prove the charges beyond a reasonable doubt.

The case will turn on whether the government can demonstrate that investor losses resulted from intentional deception and misappropriation rather than unsuccessful cryptocurrency investments. Bank records, exchange transactions, corporate accounts, investor communications and the allegedly falsified loan documents are likely to be central to that determination.