DOJ Indicts Crypto Investor Over Alleged $20 Million Fraud Targeting Dozens of Victims

Federal prosecutors allege a crypto investor orchestrated a scheme that caused about $20 million in losses. The case now heads toward a trial as investigators highlight the alleged misuse of investor funds and cryptocurrency exchanges.

Wiener pleaded not guilty during his initial court appearance on July 10 and was released on bond pending trial.

According to the indictment, Wiener allegedly persuaded investors to place money and digital assets into companies he controlled by making materially false statements to induce investments.

Prosecutors contend the scheme affected dozens of victims across South Dakota, Minnesota, and neighboring states, and that after investor funds were depleted, Wiener sought fresh investments to finance personal spending and repay earlier participants.

The indictment also alleges Wiener transferred investor funds through financial institutions and cryptocurrency exchanges to conceal their source, ownership, and movement.

Cryptocurrency investment fraud remains one of the costliest forms of cyber-enabled crime in the United States. The Federal Bureau of Investigation (FBI) reported more than $11.36 billion in cryptocurrency-related losses during 2025, a 22% increase from the previous year, while total internet crime losses approached $21 billion.

In addition to the investment fraud allegations, prosecutors accuse Wiener of obtaining a $1 million line of credit from a Sioux Falls financial institution in April 2025 by submitting falsified documents and using another person’s identifying information without authorization.

If convicted, Wiener faces potential penalties that include up to 20 years in prison for wire fraud and money laundering, up to 30 years for bank fraud, and a mandatory consecutive two-year sentence for aggravated identity theft. The government also may seek restitution for victims. Wiener remains free on bond, and his federal trial is scheduled to begin Sept. 15, 2026.