A federal grand jury indicted Sioux Falls crypto investor Benjamin Paul Wiener on 29 counts of wire fraud, money laundering, bank fraud, and aggravated identity theft, U.S. Attorney Ron Parsons announced Thursday. Wiener, 43, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10 and pleaded not guilty to charges alleging he made materially false statements to induce victims to hand over money and digital currency to his companies. Prosecutors allege the scheme affected dozens of victims across South Dakota and Minnesota, with estimated total losses of approximately $20 million, as Wiener allegedly moved funds through financial institutions and cryptocurrency exchanges to obscure their source before spending them on personal expenses.
Wiener Allegedly Operated Ponzi Scheme Using Eight Entities
After collecting the funds, Wiener allegedly moved them through financial institutions and cryptocurrency exchanges to obscure their source, ownership, and control, then spent them on personal expenses. When investor money ran dry, or a client asked for their capital back, Wiener allegedly recruited new investors and used the fresh funds to repay earlier ones — the mechanics of a Ponzi scheme. He reportedly used eight entities, including several LLCs, as vehicles for the fraud.
April 2025 Bank Fraud Involved Falsified Documents for $1 Million Credit Line
The bank fraud count centers on a Sioux Falls financial institution. In April 2025, Wiener allegedly secured a $1 million line of credit by falsifying documents and correspondence and using another person's identifying information without authorization.
Trial Set for Sept. 15 with Maximum Sentences Totaling Over 70 Years
Wiener was indicted last month and released on bond pending a Sept. 15 trial. Wire fraud and money laundering each carry up to 20 years' imprisonment. Bank fraud carries a maximum sentence of 30 years. Aggravated identity theft carries a mandatory minimum two-year term that runs consecutively to any other sentence. The IRS Criminal Investigation unit and the FBI are handling the investigation alongside the U.S. Attorney's Office.
Federal Crypto Fraud Prosecutions Include Recent New England and Washington Cases
The case lands amid a run of federal crypto fraud prosecutions. A New England man was charged in February over an alleged scheme in which he posed as a successful crypto investor and lost nearly $1 million of victim funds on the offshore gambling site Stake.com. In June, a Washington man was sentenced to five years for helping launder nearly $100 million in proceeds from overseas scams through dozens of bank and exchange accounts.
FAQ
What charges does Benjamin Paul Wiener face in the South Dakota indictment?
Benjamin Paul Wiener faces 29 counts of wire fraud, money laundering, bank fraud, and aggravated identity theft. Prosecutors allege he made materially false statements to induce victims to hand over money and digital currency to his companies, affecting dozens of victims across South Dakota and Minnesota with estimated total losses of approximately $20 million.
When is Benjamin Paul Wiener's trial scheduled?
Wiener's trial is set for Sept. 15. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10 and pleaded not guilty. He was indicted last month and released on bond pending the trial date.
What are the maximum sentences for the charges against Wiener?
Wire fraud and money laundering each carry up to 20 years' imprisonment. Bank fraud carries a maximum sentence of 30 years. Aggravated identity theft carries a mandatory minimum two-year term that runs consecutively to any other sentence.
