A Sioux Falls man faces decades in prison following charges for operating a cryptocurrency investment scheme that resulted in approximately $20 million in losses to investors.
Allegations and Legal Charges
Benjamin Paul Wiener is accused of wire fraud, money laundering, bank fraud, and aggravated identity theft, according to the U.S. Attorney’s Office for the District of South Dakota.
Federal prosecutors claim Wiener convinced victims to invest funds and digital currencies into multiple companies under his control, including Benaiah Capital LLC, Benaiah Holdings, and others. He allegedly misrepresented key facts to persuade individuals to wire money to these entities.
After receiving investor capital, Wiener is said to have routed the money through banks and crypto exchanges to obscure its origins, control, and destination. Investigators allege he used the stolen funds for personal expenses as well as to cover losses from the scheme.
When investor payouts were due or funds became scarce, Wiener purportedly recruited new investors, using their deposits to pay earlier investors while continuing to spend on himself.
Impact and Additional Fraud
The scheme reportedly affected dozens of people in South Dakota and Minnesota. In addition to investor fraud, Wiener is charged with defrauding a Sioux Falls financial institution by obtaining a $1 million line of credit with falsified documents and unauthorized use of a third party's personal information.
Facing 29 counts, Wiener could face more than $1 million in fines in addition to a lengthy prison sentence.
This article is for informational purposes only and does not constitute financial advice.
