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Alleged $20M Crypto Fraud Mastermind Charged in South Dakota
Benjamin Paul Wiener faces 29 counts for allegedly running a Ponzi-like crypto investment scheme, using investor funds for personal expenses and new investors to pay old ones.
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A Sioux Falls, South Dakota, man faces decades in prison after federal prosecutors charged him with running a $20 million crypto investment fraud scheme.
Benjamin Paul Wiener was charged with 29 counts including wire fraud, money laundering, bank fraud, and aggravated identity theft, the U.S. Attorney's Office for the District of South Dakota said.
Prosecutors allege Wiener used false statements and fraudulent representations to convince victims to invest money and digital currency into companies he controlled. After receiving the funds, he allegedly moved the money through financial institutions and cryptocurrency exchanges to obscure its origin, control, and destination.
When investor money ran low or when someone asked for a return, Wiener allegedly sought new investors and used those funds to pay earlier investors and continue spending on himself. Authorities describe the structure as a classic Ponzi-like arrangement.