Woofun AI reports that Benjamin Paul Wiener, a crypto investor based in Sioux Falls, has been charged with leading an alleged fraud and money-laundering scheme. Appearing before U.S. Magistrate Judge Veronica L. Duffy on July 10, Wiener pleaded not guilty to the charges. He remains presumed innocent until proven guilty and was released on bond pending further legal proceedings.

The scale of the alleged financial damage is estimated at approximately $20 million, impacting dozens of victims across South Dakota and Minnesota. The judicial timeline is set with a trial scheduled for September 15. This structure allows Wiener to remain free while the government prepares its case against him.

Structurally, the indictment links the scheme to eight specific entities: 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. Per Woofun AI, the filing indicates Wiener moved funds through financial institutions and cryptocurrency exchanges to conceal their location, source, ownership, and control. While all eight companies are named, the document does not specify the individual role each played in distinct transactions.

The core modus operandi involved making materially false statements and fraudulent representations to induce investments in digital currency and cash. Wiener allegedly used these incoming funds for personal expenses and to repay previous investors when capital ran low or withdrawals were requested. This cycle relied on continuously attracting new investors to sustain the operation.

A separate component of the 29-count case involves allegations that Wiener secured a $1 million line of credit from a Sioux Falls financial institution in April 2025. Prosecutors claim he obtained this credit by falsifying documents and using another individual's personal identifying information without authorization. The Justice Department has not identified the specific bank or the victim of the identity misuse, keeping these bank-fraud allegations distinct from the main investor loss estimates.