DOJ indicts crypto investor in $20M Midwest fraud

The U.S. Attorney’s Office for the District of South Dakota announced a federal grand jury returned a 29-count indictment against Benjamin Paul Wiener, 43. The indictment accuses him of wire fraud, money laundering, bank fraud and aggravated identity theft tied to roughly $20 million in losses affecting dozens of investors in South Dakota, Minnesota and neighboring states.

The indictment alleges Wiener persuaded people to place cash and digital assets into companies he controlled by making materially false statements to induce investments. Prosecutors claim that when investor funds were depleted, Wiener solicited new investments to cover personal expenses and to make payments to earlier participants, creating the appearance of returns.

Wiener appeared in federal court on July 10, pleaded not guilty and was released on bond. His trial is scheduled to begin Sept. 15, 2026. The filing additionally alleges Wiener obtained a $1 million line of credit from a Sioux Falls financial institution in April 2025 by submitting falsified documents and using another person’s identifying information without authorization.

Prosecutors allege investor funds were moved through traditional banks and cryptocurrency exchanges to conceal their source, ownership and path. The indictment describes transfers across multiple accounts and platforms. Investigators in related cases have used bank records, exchange data and blockchain transaction histories to trace funds and obtain seizure warrants; in one prosecution, authorities seized about $7.1 million from crypto wallets while pursuing more than $24.7 million in restitution.

If convicted, Wiener faces statutory penalties including up to 20 years in prison for wire fraud and money laundering, up to 30 years for bank fraud and a mandatory consecutive two-year term for aggravated identity theft. The government may seek restitution for victims.

Federal law enforcement agencies report growing cryptocurrency losses. The FBI recorded more than $11.36 billion in crypto-related losses in 2025, a 22% increase from the prior year, and reported average losses above $62,000 across 181,565 complaints. Authorities advise investors to verify companies, the people offering investments, custody arrangements and withdrawal policies, preserve transaction records and report suspected fraud to the Internet Crime Complaint Center.

The case now heads to trial as prosecutors and investigators continue to reconstruct the movement of funds through banks and digital asset platforms.