Federal prosecutors say Sioux Falls cryptocurrency investor Benjamin Paul Wiener used eight entities to commit fraud and money laundering, then moved investor funds through financial institutions and cryptocurrency exchanges to conceal their location, origin, ownership, and control.
The government estimates the damage to dozens of victims at about $20 million.
The Justice Department announced on July 16 that a federal grand jury indicted Weiner last month on 29 charges, including wire fraud, money laundering, bank fraud and aggravated identity theft.
Weiner pleaded not guilty on July 10 before U.S. Magistrate Judge Veronica L. Duffy and was released on bond pending trial. He is presumed innocent unless proven guilty, and his trial is scheduled for September 15.
According to the indictment, Mr. Wiener made material false statements and fraudulent representations in order to induce people to invest money and digital currencies in his company. The alleged scheme affected victims throughout the region, including South Dakota and Minnesota.
Prosecutors linked eight companies to the suspected fraud and money laundering scheme. Benaia Holdings, Inc.; Benaia Digital Bonds LP; Benaia Digital LP; Benaia Management Company, Inc.; Benaia Enterprises, LLC; Aslan Management LLC; and Runway 410.
The filing names all eight but does not detail what role each played in the individual transactions.
After receiving funds from investors, Weiner allegedly moved the funds through various financial institutions and virtual currency exchanges in order to conceal and disguise their location, origin, ownership, and control. Prosecutors allege he also controlled and spent the funds on personal expenses.
When victims’ funds ran out or investors demanded their investments back, Weiner allegedly sought new investors. He then used the new funds for personal expenses and to repay previous investors, according to the indictment.
Separately, the indictment alleges Wiener falsified documents, information and communications to obtain a $1 million loan facility from a Sioux Falls financial institution in April 2025.
Prosecutors also allege that he used someone else’s personal identifying information without their permission to secure credit.
The Justice Department has not identified the banks or individuals whose information was allegedly used. The announcement also does not link the proceeds on the credit line to investors’ estimated losses of $20 million, leaving the bank fraud and identity fraud allegations as separate parts of the 29 cases.
