A crypto investor from South Dakota, USA, faces 29 charges for an alleged $20 million fraud scheme

Odaily reported that U.S. prosecutors have disclosed that a federal grand jury has indicted Benjamin Paul Wiener, a crypto investor from Sioux Falls, South Dakota, on 29 criminal charges, including wire fraud, money laundering, bank fraud, and aggravated identity theft, involving approximately $20 million.

According to the indictment, Wiener, 43, is accused of inducing investors, through false statements, to invest funds and digital assets into multiple companies under his control, with victims spanning South Dakota and Minnesota and involving dozens of investors. Prosecutors allege that after obtaining the funds, Wiener transferred assets through banks and cryptocurrency exchanges to conceal the source, ownership, and control of the funds, and used part of the money for personal expenses.

Prosecutors further allege that when cash flow became tight or investors demanded redemptions, Wiener would recruit new investors and use the incoming funds to repay earlier investors, with the operation resembling a Ponzi scheme. It is reported that he utilized eight companies, including multiple LLCs, to carry out these activities.

Additionally, Wiener is accused of fabricating documents and communication records in April 2025, and using another person's identity to fraudulently obtain a $1 million line of credit from a financial institution in Sioux Falls.

Wiener appeared in court on July 10 and pleaded not guilty to all charges. He was released after posting bail. The trial is expected to begin on September 15. Under U.S. law, wire fraud and money laundering carry a maximum sentence of 20 years in prison, bank fraud carries a maximum of 30 years, and aggravated identity theft carries a mandatory consecutive sentence of at least two years. The IRS Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI) are jointly investigating the case. (The Block)