Blab Crypto
Sioux Falls Man Indicted on 29 Counts in Alleged $20 Million Crypto Fraud Scheme
A 43‑year‑old Sioux Falls entrepreneur has been hauled before federal court on a slate of 29 criminal charges that could see him spend two decades in prison.
On 16 July 2026 the U.S. Attorney’s Office for the District of South Dakota announced that Benjamin Paul Wiener, a local resident, had been indicted by a federal grand jury for a cryptocurrency investment scheme that prosecutors say left investors short of roughly $20 million.
Wiener entered a not‑guilty plea on 10 July 2026 before U.S. Magistrate Judge Veronica L. Duffy, and a trial is set for September.
The indictment says Wiener founded Benaiah Holdings and a string of affiliated entities in Sioux Falls, branding the venture as a “boutique crypto investment company.” The documents allege that he solicited money and digital currency from a network of investors, moved those assets to other accounts, and used the proceeds for personal expenses. When the accounts were drained, he allegedly lured new investors with the promise of high returns, using fresh capital to pay earlier backers while funding his own lifestyle.
Prosecutors claim that Wiener painted the companies as financially thriving even though they were either in distress or not operational at all. Those misrepresentations, according to the indictment, convinced dozens of victims to invest.
The 29 counts include wire fraud, money laundering, bank fraud, aggravated identity theft, and conspiracy to commit wire fraud. They echo a pattern of federal actions targeting crypto‑related fraud, investment scams, and money‑laundering schemes.
Benaiah Holdings has already been the subject of a civil receivership proceeding—Timothy Kinnetz v. Benaiah Holdings, Inc. et al.—filed in 2025. That lawsuit, unrelated to the criminal indictment, alleges that the firm misappropriated investor funds and is still pending.
The federal indictment cites the total loss to investors at about $20 million. The alleged scheme involved the transfer of both fiat and digital assets. While the indictment does not disclose the specific cryptocurrencies used, it indicates that the assets were moved through multiple accounts.
The U.S. Attorney’s Office said Wiener’s alleged actions violated federal law and that the indictment seeks to hold him accountable for the losses suffered by investors.
Wiener’s defense has not released a statement, and the indictment does not include any remarks from him or his counsel.
The case underscores the growing scrutiny of cryptocurrency investment vehicles that promise outsized returns. Federal prosecutors have sharpened their focus on schemes that use digital assets to hide the source of funds and to facilitate payments to investors.
The indictment also highlights the challenges regulators face in distinguishing legitimate investment opportunities from fraudulent ones. The U.S. Attorney’s Office noted that the alleged scheme involved deceptive representations and the misuse of investor funds.
If convicted, Wiener faces potential prison sentences of up to 20 years per count of wire fraud and money laundering, along with fines that could exceed $1 million.
This indictment is part of a broader trend of federal investigations into crypto fraud. Similar cases have been announced in other jurisdictions, reflecting the increasing use of digital assets in complex financial scams.
The outcome of Wiener’s trial may influence how regulators and law enforcement approach future cryptocurrency‑related fraud cases.
Until a verdict is reached, the allegations remain unproven. Investors who participated in the scheme are advised to seek legal counsel and to monitor any developments in the case.
The indictment underscores the importance of due diligence when engaging with cryptocurrency investment opportunities and the potential legal consequences of fraudulent conduct in the digital asset space.
On 16 July 2026 the U.S. Attorney’s Office for the District of South Dakota announced that Benjamin Paul Wiener, a local resident, had been indicted by a federal grand jury for a cryptocurrency investment scheme that prosecutors say left investors short of roughly $20 million.
Wiener entered a not‑guilty plea on 10 July 2026 before U.S. Magistrate Judge Veronica L. Duffy, and a trial is set for September.
The indictment says Wiener founded Benaiah Holdings and a string of affiliated entities in Sioux Falls, branding the venture as a “boutique crypto investment company.” The documents allege that he solicited money and digital currency from a network of investors, moved those assets to other accounts, and used the proceeds for personal expenses. When the accounts were drained, he allegedly lured new investors with the promise of high returns, using fresh capital to pay earlier backers while funding his own lifestyle.
Prosecutors claim that Wiener painted the companies as financially thriving even though they were either in distress or not operational at all. Those misrepresentations, according to the indictment, convinced dozens of victims to invest.
The 29 counts include wire fraud, money laundering, bank fraud, aggravated identity theft, and conspiracy to commit wire fraud. They echo a pattern of federal actions targeting crypto‑related fraud, investment scams, and money‑laundering schemes.
Benaiah Holdings has already been the subject of a civil receivership proceeding—Timothy Kinnetz v. Benaiah Holdings, Inc. et al.—filed in 2025. That lawsuit, unrelated to the criminal indictment, alleges that the firm misappropriated investor funds and is still pending.
The federal indictment cites the total loss to investors at about $20 million. The alleged scheme involved the transfer of both fiat and digital assets. While the indictment does not disclose the specific cryptocurrencies used, it indicates that the assets were moved through multiple accounts.
The U.S. Attorney’s Office said Wiener’s alleged actions violated federal law and that the indictment seeks to hold him accountable for the losses suffered by investors.
Wiener’s defense has not released a statement, and the indictment does not include any remarks from him or his counsel.
The case underscores the growing scrutiny of cryptocurrency investment vehicles that promise outsized returns. Federal prosecutors have sharpened their focus on schemes that use digital assets to hide the source of funds and to facilitate payments to investors.
The indictment also highlights the challenges regulators face in distinguishing legitimate investment opportunities from fraudulent ones. The U.S. Attorney’s Office noted that the alleged scheme involved deceptive representations and the misuse of investor funds.
If convicted, Wiener faces potential prison sentences of up to 20 years per count of wire fraud and money laundering, along with fines that could exceed $1 million.
This indictment is part of a broader trend of federal investigations into crypto fraud. Similar cases have been announced in other jurisdictions, reflecting the increasing use of digital assets in complex financial scams.
The outcome of Wiener’s trial may influence how regulators and law enforcement approach future cryptocurrency‑related fraud cases.
Until a verdict is reached, the allegations remain unproven. Investors who participated in the scheme are advised to seek legal counsel and to monitor any developments in the case.
The indictment underscores the importance of due diligence when engaging with cryptocurrency investment opportunities and the potential legal consequences of fraudulent conduct in the digital asset space.
