A South Dakota investor has been indicted on 29 federal charges for allegedly running a $20M Ponzi scheme disguised as a crypto investment platform. Benjamin Paul Wiener, 43, operated under the 'Benaiah' brand and promised investors substantial returns through entities like Benaiah Capital LLC and Benaiah Holdings Inc.
However, prosecutors say that instead of investing the funds, Wiener recycled money from new investors to pay earlier ones. Since at least 2018, his companies raised approximately $25.1 million, with roughly $12 million returned to investors.
The indictment also alleges that Wiener used $5.7 million for personal expenses and obtained a $1 million line of credit in April 2025 using falsified documents. The government's case relies on the alleged laundering of proceeds through various banks and cryptocurrency exchanges.
Investors are advised to be cautious when considering digital asset funds or managed investment vehicles, verifying registrations and demanding audited financials before investing.