Crypto Investor Charged in $20M Fraud Scheme

A South Dakota investor was indicted on 29 counts for an alleged $20 million fraud that mixed money laundering, identity theft, and a crypto-based Ponzi-like structure. Benjamin Paul Wiener used funds from new investors to pay older ones and cover personal expenses, routing money through crypto exchanges, prosecutors said.

The indictment, unsealed this week, charges Wiener with wire fraud, securities fraud, and theft of government funds. The 29 counts include multiple instances of identity theft tied to falsified documents presented to lenders and investors. Wiener allegedly raised $20 million through false promises of returns from crypto trading and real estate investments, according to the U.S. Attorney's office for the District of South Dakota.

Authorities said Wiener's crypto exchange activity formed a key part of the money laundering trail. New investor deposits were used to sustain earlier investors, a classic Ponzi dynamic, while a portion went to personal spending. The indictment does not name the specific exchanges involved.