A federal grand jury has returned a sweeping indictment against a 43-year-old Sioux Falls resident accused of running an investment scheme that prosecutors say pulled in roughly $25.1 million and left investors with steep losses.
Charges, timeline and scope
Benjamin Paul Wiener has been charged on 29 federal counts, including wire fraud, money laundering, bank fraud and aggravated identity theft. He pleaded not guilty on July 10 and was released on bond. His trial is scheduled to begin Sept. 15.
According to the indictment, Wiener operated a group of companies using the Benaiah name—entities such as Benaiah Capital LLC and Benaiah Holdings Inc.—that solicited funds from investors for digital asset opportunities. Prosecutors say the operation began no later than 2018 and primarily drew investors from South Dakota and Minnesota.
How prosecutors say the scheme worked
Federal authorities describe a pattern familiar to regulators: new investor money was used to satisfy earlier investors rather than being deployed as promised. The indictment alleges:
- Approximately $25.1 million was raised by Wiener’s Benaiah entities.
- About $12 million was returned to investors.
- Roughly $5.7 million flowed to Wiener’s personal expenses, according to prosecutors.
| Category | Amount |
|---|---|
| Total raised | $25.1 million |
| Returned to investors | $12 million |
| Alleged personal spending | $5.7 million |
In addition to fraud and money-laundering counts, the indictment includes an allegation that Wiener obtained a $1 million line of credit in April 2025 using falsified documents, a separate bank fraud charge, and aggravated identity theft counts that add mandatory sentences if convicted.
Unraveling and investigation
A court-appointed receiver was named in August 2025 after investor complaints prompted a formal probe into the Benaiah entities. The receiver’s work appears to have contributed to the evidence that led to the grand jury indictment about ten months later.
Prosecutors say the alleged scheme used a mix of traditional banking and cryptocurrency exchanges to move money, a practice they contend was aimed at obscuring the trail between investor deposits and the operator’s accounts.
Local impact and what investors should know
The indictment underscores continuing risks for local investors drawn to promises of outsized returns tied to digital assets. While this case alleges criminal conduct by a single operator rather than flaws in the underlying technology, it highlights how bad actors can use crypto platforms alongside banks to try to hide illicit flows.
Practical takeaways for individuals who invest in private offerings or digital-asset ventures include:
- Verify registrations and background of firms and individuals soliciting funds.
- Request clear, audited records of how investor funds are allocated and used.
- Be wary of investment models that rely on constant inflows to sustain returns.
Those who believe they may have been affected by the Benaiah companies should monitor public filings in the case and consult with legal counsel or consumer protection officials for steps to report losses and preserve documents.
The case will proceed in federal court this fall. If convicted, defendants face significant prison terms: most wire fraud and money-laundering counts carry maximum sentences of 20 years, and aggravated identity theft counts add mandatory additional time.
News Block will continue to follow court proceedings and any receiver reports that shed further light on how the alleged scheme operated and how investors might recover losses.
