U.S. Charges SD Crypto Investor in Alleged $20M Fraud

A federal grand jury returned a 29-count indictment Thursday charging South Dakota cryptocurrency investor Benjamin P. Wiener with running an alleged $20 million investment fraud, the Department of Justice announced. Wiener is 43 years old.

The indictment alleges Wiener persuaded people to invest cash and digital assets with his companies by making false statements about how the funds would be used and the returns investors could expect. Prosecutors say he used money from new investors to repay earlier investors and to cover personal expenses after funds became depleted.

Officials allege some proceeds were moved through cryptocurrency exchanges and traditional banks to hide the source of the money. The scheme is said to have affected dozens of victims in South Dakota, Minnesota and nearby areas, and to involve multiple transactions across Wiener’s business and related accounts.

The charges include multiple counts of wire fraud and money laundering, a bank fraud count and an aggravated identity theft charge. The indictment sets out potential penalties: up to 30 years in prison and a $1 million fine for the bank fraud count; up to 20 years and a $250,000 fine for each wire fraud and money laundering count; and a mandatory consecutive two-year term for the aggravated identity theft count.

An indictment is a formal accusation and does not establish guilt. The case will move through the federal court system, where prosecutors will present evidence and the defendant will have the opportunity to respond. The Department of Justice said further court filings and hearings will set the next steps in the prosecution.