The U.S. Attorney's Office for the District of South Dakota announced that a federal grand jury has returned a 29-count indictment against 43-year-old cryptocurrency investor Benjamin Paul Weiner. The Department of Justice's 29-count indictment includes charges of wire fraud, money laundering, bank fraud, and aggravated identity theft, resulting in losses of approximately $20 million for dozens of victims across multiple regions.
During his initial court appearance on July 10th, Weiner pleaded not guilty and was released on bail pending trial.
According to the indictment, Weiner allegedly persuaded investors to contribute funds and digital assets to companies he controlled, making materially false statements to secure investments.
Prosecutors claim this scheme affected dozens of victims in South Dakota, Minnesota, and neighboring states, and that after depleting investors' funds, Weiner sought new investments to finance personal expenses and make payments to earlier participants.
The indictment also alleges that Weiner transferred investor funds through financial institutions and cryptocurrency exchanges to conceal their source, ownership, and movement.
Recent DOJ Cases Showcase Similar Schemes
The federal prosecutors' charges against Weiner mirror tactics described in other cryptocurrency fraud proceedings, where organizers allegedly used new deposits to pay earlier investors while creating the appearance of legitimate investment returns.
These charges also align with another federal case where investor funds passed through exchanges after moving through 81 bank accounts and 19 cryptocurrency exchange accounts, illustrating how investigators trace complex fund flows across traditional financial institutions and digital asset platforms.
While cryptocurrency transactions may span multiple wallets and exchanges, they also leave trails that help investigators track funds, secure seizure warrants, and identify linked accounts. This process was evident in a separate $100 million court proceeding where federal prosecutors seized cryptocurrency proceeds after arresting approximately $7.1 million from cryptocurrency wallets, while also seeking over $24.7 million in restitution.
Cryptocurrency Fraud Losses Continue to Rise
Cryptocurrency investment fraud remains one of the costliest forms of cybercrime in the United States. The Federal Bureau of Investigation (FBI) reported that in 2025, losses related to cryptocurrencies exceeded $11.36 billion, a 22% increase from the previous year, while total internet crime losses neared $21 billion.
In April, the FBI published a report indicating that investment fraud comprised the largest share of cryptocurrency-related losses, with the median loss per victim across 181,565 complaints exceeding $62,000.
In the FBI's guidance on cryptocurrency investment fraud, investors are advised to independently verify companies, investment professionals, asset custody terms, and withdrawal policies before sending money. The agency also urges victims to preserve transaction records and correspondence and report suspected fraud to the Internet Crime Complaint Center as quickly as possible.
Bank Fraud Charge Carries Additional 30-Year Prison Sentence
In addition to investment fraud charges, prosecutors accuse Weiner of obtaining a $1 million line of credit from a Sioux Falls financial institution in April 2025 by presenting forged documents and using another person's identification without authorization.
If convicted, Weiner faces penalties including up to 20 years imprisonment 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 also seek victim restitution. Weiner remains free on bail, and his federal court trial is scheduled to begin on September 15, 2026.
