A cryptocurrency investor has been charged by a US federal grand jury with running an alleged multi‐million‐dollar fraud that prosecutors say cost victims about $20m across several Midwestern states.
Benjamin Paul Wiener, 43, faces 29 counts in an indictment brought by the U.S. Attorney’s Office for the District of South Dakota, including wire fraud, money laundering, bank fraud and aggravated identity theft. Prosecutors say the alleged scheme affected dozens of people in South Dakota, Minnesota and neighbouring states.
Wiener entered a not guilty plea at his first court appearance on 10 July and was released on bond while he awaits trial. His federal trial is currently scheduled to begin on 15 September 2026. He remains presumed innocent unless proven guilty in court.
Alleged scheme to attract and divert investor funds
According to the indictment, Wiener is accused of convincing individuals to invest cash and digital assets into companies he controlled by making materially false statements designed to induce those investments.
Prosecutors allege that once funds were obtained, Wiener diverted investor money through a series of financial institutions and cryptocurrency exchanges to hide the source, ownership and movement of the assets. When existing investor funds ran low, he is said to have sought new money to cover personal spending and repay earlier participants.
The charging document describes conduct that federal prosecutors say resembles patterns seen in other cryptocurrency fraud cases, in which new deposits are allegedly used to repay previous investors while creating the impression of legitimate returns.
Complex money flows through banks and exchanges
Investigators say the tactics outlined in Wiener’s case echo methods used in a separate federal prosecution where investor funds passed through 81 bank accounts and 19 cryptocurrency exchange accounts before being traced.
That earlier case, involving $100m, highlighted how federal agents reconstruct intricate money flows across both traditional financial institutions and digital asset platforms. Prosecutors in that matter recovered crypto proceeds after seizing about $7.1m from cryptocurrency wallets and seeking more than $24.7m in restitution for victims.
Authorities stress that, while cryptocurrencies can move rapidly between multiple wallets and exchanges, each transfer leaves a record. Those records can be used to follow the trail of funds, obtain seizure warrants and identify related accounts when investigating suspected fraud.
Rising losses from cryptocurrency investment scams
Federal law enforcement agencies say cryptocurrency investment fraud has become one of the costliest categories of cyber‐enabled crime in the United States.
The Federal Bureau of Investigation reported that cryptocurrency‐related losses exceeded $11.36bn in 2025, representing a 22% rise on the previous year. Overall internet crime losses approached $21bn over the same period, the FBI said.
An FBI report released in April found that investment fraud accounted for the largest share of cryptocurrency losses, with victims reporting average losses of more than $62,000 across 181,565 complaints.
The FBI’s guidance on cryptocurrency investment fraud urges potential investors to independently check the background of companies and investment professionals, confirm how assets will be held, and understand withdrawal policies before sending funds. The agency also advises victims to keep transaction records and communications and to report suspected fraud promptly to the Internet Crime Complaint Center.
Additional bank fraud and identity theft allegations
Beyond the investment‐related charges, prosecutors allege that Wiener obtained a $1m line of credit from a financial institution in Sioux Falls in April 2025 by submitting falsified documentation and using another individual’s identifying information without permission.
If convicted, Wiener faces a range of potential penalties. The wire fraud and money laundering counts each carry maximum sentences of up to 20 years in prison, while bank fraud is punishable by up to 30 years. The aggravated identity theft charge would require a mandatory additional two‐year prison term to run consecutively to any other sentence. The government may also seek restitution on behalf of victims.
