Crypto investor charged with using 8 companies and new investor cash to keep an alleged $20M fraud alive

Here is the latest from the digital-asset markets: Federal prosecutors say Sioux Falls crypto investor Benjamin Paul Wiener used eight entities in an alleged fraud and money-laundering scheme, then moved investor funds through financial institutions and cryptocurrency exchanges to conceal their location, source, ownership, and control. The government estimates the alleged losses at approximately $20 million across dozens of victims. The Justice Department announced on July 16 that a federal grand jury had indicted Wiener the previous month on 29 counts involving wire fraud, money laundering, bank fraud and aggravated identity theft.

Wiener pleaded not guilty on July 10 before U. Magistrate Judge Veronica L. Duffy and was released on bond pending trial.

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He is presumed innocent unless and until proven guilty, and his trial is scheduled for September 15. Related Reading DOJ moves to drop $722M BitClub case before trial as victims wait to learn what they will recover The $722 million alleged scheme total is separate from recovery, while final terms and a court filing remain unresolved. Jul 13, 2026 Liam 'Akiba' Wright According to the indictment, Wiener made materially false statements and fraudulent representations to induce people to invest money and digital currency with his companies.

The alleged scheme affected victims throughout the region, including in South Dakota and Minnesota. Prosecutors tied eight companies to the alleged fraud and money-laundering scheme: Benaiah Capital LLC; Benaiah Holdings, Inc. ; Benaiah Digital Fixed Income LP; Benaiah Digital LP; Benaiah Management Company, Inc.

; Benaiah Enterprises, LLC; Aslan Management, LLC; and Runway Four10. The filing names all eight but does not spell out what role each played in individual transactions. Related Reading SEC filings reveal the multi-million dollar trap hiding inside ‘exclusive’ WhatsApp crypto investment clubs The SEC's complaint maps the playbook of group chat "signals," phony STOs, and a withdrawal-fee twist, plus how to verify licenses in minutes.

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Dec 30, 2025 Gino Matos After receiving investor funds, Wiener allegedly moved the money through various financial institutions and cryptocurrency exchanges to conceal and disguise its location, source, ownership, and control. Prosecutors say he also controlled and spent the funds on personal expenses. When victim funds became depleted, or an investor requested the return of an investment, Wiener allegedly sought new investors.

The indictment says he then used new money for personal expenses and to repay previous investors. Related Reading DOJ seizures of $580M expose how crypto investment scams scaled into shift work with quotas and scripts Justice Department says it froze or seized $580M in three months by hitting scam infrastructure. Mar 1, 2026 Gino Matos Separately, the indictment alleges that Wiener obtained a $1 million line of credit from a Sioux Falls financial institution in April 2025 by falsifying documents, information and correspondence.

Prosecutors also allege that he used another individual's personal identifying information without authorization to secure the credit. The Justice Department does not identify the bank or the individual whose information was allegedly used. Its release also does not connect the credit-line proceeds to the estimated $20 million investor loss, leaving the bank-fraud and identity-misuse allegations as a distinct part of the 29-count case.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.