Key Takeaways
- • Florida financier Timothy A. Kinnetz, sole trustee of a trust, is seeking a receivership in U.S. District Court for the District of South Dakota after investing $4 million in two Benaiah Co. entities that later collapsed.
- • Kinnetz alleges the trust's attorney introduced him to Benjamin Wiener, Benaiah's fund manager, while secretly serving as general counsel for both the trust and the Benaiah companies.
- • The trust's account balance was reportedly less than $600 by March 2025, according to the complaint, after the 2022 crypto market crash and alleged misrepresentations about account visibility.
- • The FBI and IRS executed a raid on Wiener's residence in late June 2025 as part of an investigation related to investor capital.
- • Kinnetz's counsel, Alexandra Dugan of Bradley Arant Boult Cummings, has filed the case before U.S. District Judge Camela C. Theeler; neither Dugan nor Benaiah Co. responded to requests for comment.
Summary
A Florida financier is pursuing a receivership in South Dakota federal court following the collapse of cryptocurrency hedge fund Benaiah Co., according to Law.com. The plaintiff, Timothy A. Kinnetz, a Florida resident and sole trustee of a trust, alleges he was introduced to defendant Benjamin Wiener by the trust's attorney, who presented himself as having deep expertise in digital asset investments. The attorney, whose name is not disclosed in the lawsuit, reviewed the investment documents and recommended proceeding.
Kinnetz agreed to invest $4 million of the trust's funds across two Benaiah entities: $1 million to Benaiah Digital LP for higher-risk digital assets such as altcoins, and $3 million to Benaiah Capital LLC for the crypto equivalent of blue-chip holdings. Kinnetz claims he did not authorize additional risk, including staking, option contracts or margin trading. Following the crypto market crash in late 2022, he directed Wiener to realize more than $2 million in capital losses for 2022 and reinvest the proceeds, relying on advice from the trust's tax professional and wealth managers.
According to the complaint, Wiener notified investors in November 2023 that statements would be delayed, while providing Kinnetz with a system that appeared to show real-time balances. Kinnetz learned in March 2025 that this representation was false and subsequently gained direct account access, which showed a balance of less than $600. The attorney then recused himself, disclosing for the first time that he had served as general counsel for both the trust and the Benaiah companies. The trust has demanded return of its investment, and Wiener has reportedly sought to persuade investors to delay redemptions.
The case, handled by Alexandra Dugan, a partner in Nashville at Bradley Arant Boult Cummings, is pending before Judge Theeler. Stephanie Hauser, a partner at LKLSG and former federal prosecutor, told Law.com that the lawsuit may reflect the SEC's current focus on developing its digital asset policy rather than small-to-midsized enforcement actions, and that private receivership actions can give investors faster access to information and help halt further dissipation of assets.
Kinnetz agreed to invest $4 million of the trust's funds across two Benaiah entities: $1 million to Benaiah Digital LP for higher-risk digital assets such as altcoins, and $3 million to Benaiah Capital LLC for the crypto equivalent of blue-chip holdings. Kinnetz claims he did not authorize additional risk, including staking, option contracts or margin trading. Following the crypto market crash in late 2022, he directed Wiener to realize more than $2 million in capital losses for 2022 and reinvest the proceeds, relying on advice from the trust's tax professional and wealth managers.
According to the complaint, Wiener notified investors in November 2023 that statements would be delayed, while providing Kinnetz with a system that appeared to show real-time balances. Kinnetz learned in March 2025 that this representation was false and subsequently gained direct account access, which showed a balance of less than $600. The attorney then recused himself, disclosing for the first time that he had served as general counsel for both the trust and the Benaiah companies. The trust has demanded return of its investment, and Wiener has reportedly sought to persuade investors to delay redemptions.
The case, handled by Alexandra Dugan, a partner in Nashville at Bradley Arant Boult Cummings, is pending before Judge Theeler. Stephanie Hauser, a partner at LKLSG and former federal prosecutor, told Law.com that the lawsuit may reflect the SEC's current focus on developing its digital asset policy rather than small-to-midsized enforcement actions, and that private receivership actions can give investors faster access to information and help halt further dissipation of assets.
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