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{"actor":"system:backfill","investigation_id":"96a72320-d999-48ba-9830-5555d5ecabd6","kind":"publish","page_slug":"benjamin-paul-wiener","published_at":"2026-07-22T01:58:25.599Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Benjamin Paul Wiener","sections":[{"content":"On or about June 2026, a federal grand jury in the District of South Dakota indicted Benjamin Paul Wiener on 29 counts, including wire fraud, bank fraud, money laundering, and aggravated identity theft. According to the U.S. Attorney's Office for the District of South Dakota, prosecutors allege Wiener operated a Ponzi-style scheme through roughly eight affiliated entities -- most bearing the \"Benaiah\" name (including Benaiah Capital LLC and Benaiah Digital LP), along with Aslan Management LLC and Runway Four10 -- soliciting investors with false statements and fraudulent representations about cryptocurrency-focused investment vehicles. Prosecutors allege that when investor funds were depleted or withdrawals were requested, Wiener allegedly recruited new investors and used their money to repay earlier investors, a hallmark of a Ponzi scheme, while allegedly routing funds through banks and cryptocurrency exchanges to obscure their origin and to fund personal spending. Wiener appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10, 2026, and pleaded not guilty; he was released on bond pending a September 15, 2026 trial. These are allegations contained in a grand jury indictment, not proven facts, and Wiener is presumed innocent unless and until convicted.","heading":"Federal Criminal Indictment (29 Counts)","severity":"critical","sources":[{"credibility":1,"name":"U.S. Attorney's Office, District of South Dakota (DOJ) press release","type":"regulatory","url":"https://www.justice.gov/usao-sd/pr/sioux-falls-crypto-investor-indicted-wire-fraud-money-laundering-bank-fraud-and"},{"credibility":2,"name":"US jury indicts South Dakota crypto investor on 29 counts over alleged $20 million investor fraud - The Block","type":"news_article","url":"https://www.theblock.co/amp/post/408654/us-jury-indicts-south-dakota-crypto-investor-29-counts-alleged-20m-investor-fraud"},{"credibility":2,"name":"South Dakota Crypto Investor Indicted Over Alleged $20M Fraud - CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/07/16/south-dakota-crypto-investor-indicted-over-alleged-20m-fraud/"},{"credibility":2,"name":"Crypto Fraud Indictment Unveils $20 Million Scam Details - Cryptonomist","type":"news_article","url":"https://en.cryptonomist.ch/2026/07/17/crypto-fraud-indictment-scam/"}]},{"content":"News reporting citing the indictment states that Wiener's Benaiah-affiliated entities raised approximately $25.1 million from investors -- primarily concentrated in South Dakota and Minnesota -- since at least 2018, of which roughly $12 million was allegedly returned to investors (consistent with a Ponzi structure of paying earlier investors with later investors' money) and approximately $5.7 million allegedly went directly to Wiener's personal expenses. Prosecutors have separately described the net alleged fraud, or the amount solicited under false pretenses, as approximately $20 million. Dozens of victims are alleged to be spread across South Dakota, Minnesota, and neighboring states. As with all figures drawn from an untried indictment, these amounts are allegations that have not been proven in court.","heading":"Alleged Scale of Losses and Investor Fund Flows","severity":"critical","sources":[{"credibility":2,"name":"US jury indicts South Dakota crypto investor on 29 counts over alleged $20 million investor fraud - The Block","type":"news_article","url":"https://www.theblock.co/amp/post/408654/us-jury-indicts-south-dakota-crypto-investor-29-counts-alleged-20m-investor-fraud"},{"credibility":2,"name":"South Dakota Crypto Investor Indicted Over Alleged $20M Fraud - CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/07/16/south-dakota-crypto-investor-indicted-over-alleged-20m-fraud/"}]},{"content":"The indictment reportedly alleges that in April 2025, Wiener obtained a $1 million line of credit from a Sioux Falls-area financial institution by falsifying documents and using another person's identifying information without authorization -- the conduct underlying the bank fraud and aggravated identity theft counts. If convicted on the identity theft count, federal law requires a mandatory two-year prison term to run consecutively (i.e., in addition to, not concurrent with) any other sentence imposed.","heading":"Alleged Bank Fraud and Identity Theft via Fraudulent Line of Credit","severity":"high","sources":[{"credibility":2,"name":"US jury indicts South Dakota crypto investor on 29 counts over alleged $20 million investor fraud - The Block","type":"news_article","url":"https://www.theblock.co/amp/post/408654/us-jury-indicts-south-dakota-crypto-investor-29-counts-alleged-20m-investor-fraud"},{"credibility":2,"name":"South Dakota Crypto Investor Indicted Over Alleged $20M Fraud - CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/07/16/south-dakota-crypto-investor-indicted-over-alleged-20m-fraud/"}]},{"content":"Roughly a year before the criminal indictment, a civil lawsuit was filed on July 18, 2025 in the U.S. District Court for the District of South Dakota by Timothy Kinnetz, as trustee of the Timothy A. Kinnetz Revocable Trust (Florida), against Benaiah Holdings Inc., Benaiah Capital LLC, Benaiah Digital LP, Benaiah Digital Fixed Income LP, Benjamin Paul Wiener, Joshua Dewitt, and Christopher Hmielewski. The complaint alleges the trust invested $4 million with Benaiah in late 2021 for cryptocurrency trading, that communication from the fund stopped in late 2024, and that when the trustee gained access to the fund's Kraken exchange account in March 2025, the balance was reportedly less than $600. The complaint alleges fraud, conversion, and fraudulent conveyance, and sought damages, a full accounting, and appointment of a receiver. On August 15, 2025, U.S. District Judge Camela Theeler reportedly issued an order freezing Benaiah's assets after finding the plaintiff had presented evidence of potential fraud and that Wiener had engaged in deceptive and misleading statements; the court later broadened a receiver's authority after finding an \"imminent danger\" that assets could be dissipated. A court-appointed receiver reportedly found only $888 remaining in Benaiah's accounts. These are civil allegations; the underlying claims have not been finally adjudicated on the merits as reported.","heading":"Prior Civil Litigation and Asset Freeze (Kinnetz v. Benaiah Holdings)","severity":"high","sources":[{"credibility":2,"name":"Florida Trust Files Lawsuit Against Sioux Falls Crypto Fund - Marshall Radio","type":"news_article","url":"https://marshallradio.net/florida-trust-files-lawsuit-against-sioux-falls-crypto-fund/"},{"credibility":1,"name":"Timothy Kinnetz v. Benaiah Holdings Inc. et al: Receivership Complaint - OffshoreAlert","type":"court_filing","url":"https://www.offshorealert.com/timothy-kinnetz-v-benaiah-holdings-inc-et-al-receivership-complaint-4m-south-dakota-hedge-fund-fraud/"},{"credibility":2,"name":"Feds probing South Dakota brokers for cryptocurrency 'Ponzi scheme' - The Dakota Scout","type":"news_article","url":"https://www.thedakotascout.com/p/fbi-irs-probing-sioux-falls-hedge"}]},{"content":"According to local reporting, Wiener was arrested in approximately mid-July 2026 on more than two dozen federal felony charges connected to the Benaiah-related fraud investigation and was held at the Minnehaha County Jail before appearing at the federal courthouse in Sioux Falls. He was later released on bond pending trial after his not-guilty plea on July 10, 2026, according to other reporting on the arraignment. Reporting on the precise sequence of arrest versus arraignment dates varies slightly between outlets; readers should treat exact day-by-day sequencing as approximate pending the unsealed docket.","heading":"Arrest and Custody","severity":"medium","sources":[{"credibility":2,"name":"Alleged cryptocurrency conman released pending fraud trial - The Dakota Scout","type":"news_article","url":"https://www.thedakotascout.com/p/alleged-cryptocurrency-conman-released"},{"credibility":2,"name":"US jury indicts South Dakota crypto investor on 29 counts over alleged $20 million investor fraud - The Block","type":"news_article","url":"https://www.theblock.co/amp/post/408654/us-jury-indicts-south-dakota-crypto-investor-29-counts-alleged-20m-investor-fraud"}]},{"content":"The criminal case is being investigated by IRS Criminal Investigation and the Federal Bureau of Investigation (FBI), and is being prosecuted by the U.S. Attorney's Office for the District of South Dakota, according to the DOJ's press release and multiple news reports. The FBI and IRS involvement reportedly began as a multi-state investigation into Benaiah Holdings prior to the criminal indictment, running roughly parallel to the Kinnetz civil case.","heading":"Federal Investigating Agencies","severity":"medium","sources":[{"credibility":1,"name":"U.S. Attorney's Office, District of South Dakota (DOJ) press release","type":"regulatory","url":"https://www.justice.gov/usao-sd/pr/sioux-falls-crypto-investor-indicted-wire-fraud-money-laundering-bank-fraud-and"},{"credibility":2,"name":"Feds probing South Dakota brokers for cryptocurrency 'Ponzi scheme' - The Dakota Scout","type":"news_article","url":"https://www.thedakotascout.com/p/fbi-irs-probing-sioux-falls-hedge"}]},{"content":"If convicted, Wiener would face a statutory maximum of up to 30 years' imprisonment and a $1 million fine on the bank fraud count; up to 20 years' imprisonment and a $250,000 fine on each wire fraud and money laundering count; and a mandatory, consecutive two-year prison term on the aggravated identity theft count. These are statutory maximums as reported by news outlets citing the indictment and do not reflect any actual sentence, which would be determined by a court applying the U.S. Sentencing Guidelines only in the event of a conviction or guilty plea.","heading":"Potential Penalties If Convicted","severity":"high","sources":[{"credibility":2,"name":"South Dakota Crypto Investor Indicted Over Alleged $20M Fraud - CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/07/16/south-dakota-crypto-investor-indicted-over-alleged-20m-fraud/"},{"credibility":2,"name":"Crypto Fraud Indictment Unveils $20 Million Scam Details - Cryptonomist","type":"news_article","url":"https://en.cryptonomist.ch/2026/07/17/crypto-fraud-indictment-scam/"}]}],"sources_used":[{"credibility":1,"name":"U.S. Attorney's Office, District of South Dakota (DOJ) press release","type":"regulatory","url":"https://www.justice.gov/usao-sd/pr/sioux-falls-crypto-investor-indicted-wire-fraud-money-laundering-bank-fraud-and"},{"credibility":2,"name":"US jury indicts South Dakota crypto investor on 29 counts over alleged $20 million investor fraud - The Block","type":"news_article","url":"https://www.theblock.co/amp/post/408654/us-jury-indicts-south-dakota-crypto-investor-29-counts-alleged-20m-investor-fraud"},{"credibility":2,"name":"South Dakota Crypto Investor Indicted Over Alleged $20M Fraud - CryptoTimes","type":"news_article","url":"https://www.cryptotimes.io/2026/07/16/south-dakota-crypto-investor-indicted-over-alleged-20m-fraud/"},{"credibility":2,"name":"Crypto Fraud Indictment Unveils $20 Million Scam Details - Cryptonomist","type":"news_article","url":"https://en.cryptonomist.ch/2026/07/17/crypto-fraud-indictment-scam/"},{"credibility":2,"name":"Florida Trust Files Lawsuit Against Sioux Falls Crypto Fund - Marshall Radio","type":"news_article","url":"https://marshallradio.net/florida-trust-files-lawsuit-against-sioux-falls-crypto-fund/"},{"credibility":1,"name":"Timothy Kinnetz v. Benaiah Holdings Inc. et al: Receivership Complaint - OffshoreAlert","type":"court_filing","url":"https://www.offshorealert.com/timothy-kinnetz-v-benaiah-holdings-inc-et-al-receivership-complaint-4m-south-dakota-hedge-fund-fraud/"},{"credibility":2,"name":"Feds probing South Dakota brokers for cryptocurrency 'Ponzi scheme' - The Dakota Scout","type":"news_article","url":"https://www.thedakotascout.com/p/fbi-irs-probing-sioux-falls-hedge"},{"credibility":2,"name":"Alleged cryptocurrency conman released pending fraud trial - The Dakota Scout","type":"news_article","url":"https://www.thedakotascout.com/p/alleged-cryptocurrency-conman-released"}],"summary":"Benjamin Paul Wiener is a 43-year-old Sioux Falls, South Dakota resident and founder of the Benaiah group of investment entities who was indicted by a federal grand jury in June 2026 on 29 counts including wire fraud, bank fraud, money laundering, and aggravated identity theft, in connection with an alleged Ponzi-style scheme that solicited roughly $20-25 million from investors in cash and cryptocurrency. Wiener pleaded not guilty at his arraignment on July 10, 2026, and is scheduled for trial on September 15, 2026; the case is a pending criminal matter and Wiener is presumed innocent unless and until convicted. A separate, earlier-filed civil lawsuit and court-ordered asset freeze/receivership against Wiener's Benaiah entities alleges similar conduct and predates the criminal indictment.","timeline":[{"date":"2018-01-01","event":"Wiener's Benaiah-affiliated entities allegedly began raising investor funds for cryptocurrency-focused investment vehicles (approximate start date, per indictment reporting).","source":"The Block","source_url":"https://www.theblock.co/amp/post/408654/us-jury-indicts-south-dakota-crypto-investor-29-counts-alleged-20m-investor-fraud"},{"date":"2021-12-01","event":"The Timothy A. Kinnetz Revocable Trust allegedly invested $4 million with Benaiah for cryptocurrency trading (late 2021, approximate).","source":"Marshall Radio / OffshoreAlert","source_url":"https://marshallradio.net/florida-trust-files-lawsuit-against-sioux-falls-crypto-fund/"},{"date":"2024-12-01","event":"Communication from Benaiah to the Kinnetz Trust allegedly stopped (late 2024, approximate).","source":"Marshall Radio","source_url":"https://marshallradio.net/florida-trust-files-lawsuit-against-sioux-falls-crypto-fund/"},{"date":"2025-03-01","event":"Trustee Timothy Kinnetz allegedly discovered the fund's Kraken exchange account balance had dropped to less than $600.","source":"Marshall Radio","source_url":"https://marshallradio.net/florida-trust-files-lawsuit-against-sioux-falls-crypto-fund/"},{"date":"2025-04-01","event":"Wiener allegedly obtained a fraudulent $1 million line of credit from a Sioux Falls financial institution using falsified documents and another person's identity (basis for bank fraud/identity theft counts).","source":"The Block","source_url":"https://www.theblock.co/amp/post/408654/us-jury-indicts-south-dakota-crypto-investor-29-counts-alleged-20m-investor-fraud"},{"date":"2025-06-01","event":"A federal search related to the Benaiah investigation was reportedly conducted.","source":"OffshoreAlert","source_url":"https://www.offshorealert.com/timothy-kinnetz-v-benaiah-holdings-inc-et-al-receivership-complaint-4m-south-dakota-hedge-fund-fraud/"},{"date":"2025-07-18","event":"Timothy Kinnetz, as trustee, filed a civil lawsuit against Benaiah Holdings, affiliated entities, Wiener, Joshua Dewitt, and Christopher Hmielewski in the U.S. District Court for the District of South Dakota.","source":"Marshall Radio / OffshoreAlert","source_url":"https://marshallradio.net/florida-trust-files-lawsuit-against-sioux-falls-crypto-fund/"},{"date":"2025-08-15","event":"U.S. District Judge Camela Theeler issued an order freezing Benaiah's assets, finding evidence of potential fraud and deceptive statements by Wiener.","source":"The Dakota Scout","source_url":"https://www.thedakotascout.com/p/fbi-irs-probing-sioux-falls-hedge"},{"date":"2026-06-01","event":"A federal grand jury in the District of South Dakota indicted Benjamin Paul Wiener on 29 counts including wire fraud, bank fraud, money laundering, and aggravated identity theft (indictment reported as returned in June 2026).","source":"U.S. Attorney's Office, District of South Dakota","source_url":"https://www.justice.gov/usao-sd/pr/sioux-falls-crypto-investor-indicted-wire-fraud-money-laundering-bank-fraud-and"},{"date":"2026-07-10","event":"Wiener appeared before U.S. Magistrate Judge Veronica L. Duffy and pleaded not guilty to all 29 counts.","source":"CryptoTimes","source_url":"https://www.cryptotimes.io/2026/07/16/south-dakota-crypto-investor-indicted-over-alleged-20m-fraud/"},{"date":"2026-07-16","event":"News outlets reported publicly on the unsealed indictment and Wiener's not-guilty plea.","source":"CryptoTimes","source_url":"https://www.cryptotimes.io/2026/07/16/south-dakota-crypto-investor-indicted-over-alleged-20m-fraud/"},{"date":"2026-09-15","event":"Trial is scheduled to begin in the U.S. District Court for the District of South Dakota.","source":"The Block","source_url":"https://www.theblock.co/amp/post/408654/us-jury-indicts-south-dakota-crypto-investor-29-counts-alleged-20m-investor-fraud"}]},"v":1}