A Denver-based online pastor and his wife have been indicted for allegedly running a $3.4 million crypto scam that defrauded hundreds of Christian investors through a worthless token called INDXcoin.
Alleged Religious Crypto Fraud
Eli Regalado and his wife Kaitlyn Regalado were indicted on 40 criminal counts on Tuesday, according to Denver District Attorney John Walsh. The charges stem from an alleged faith-based cryptocurrency fraud conducted between January 2022 and July 2023.
“Mr. Regalado took advantage of the trust and faith of his own Christian community,” said Colorado Securities Commissioner Tung Chan.
The couple created and promoted INDXcoin, which was sold through their own Kingdom Wealth Exchange platform, promising investors that the coin would bring them wealth — claims allegedly backed by divine guidance.
God-Told Crypto Sales Pitch
According to the indictment, the Regalados convinced at least 300 investors — many from their religious community — to invest in INDXcoin. Eli reportedly claimed that “God told him directly” the investors would become rich by backing the project.
But the token was essentially worthless and never listed on major exchanges or backed by viable technology. Investigators say the couple used $1.3 million of the investor funds for personal expenses, including home renovations, which they allegedly justified as being commanded by the Lord.
$3.4 Million Raised, Zero Value Delivered
The total loss to investors is estimated at $3.4 million, while INDXcoin maintains zero real market value. Only a small portion of the funds were ever directed toward building a legitimate business.
“These charges mark a major step toward accountability and justice for the victims,” DA Walsh stated, crediting the Colorado Division of Securities and the Colorado Attorney General’s Office for their investigative work.
A Warning to Crypto and Faith Communities
The case is being viewed as a cautionary tale for both the crypto and religious communities. Authorities say the Regalados preyed on trust and faith, offering false promises of divine profit through an unregulated and unbacked digital asset.
This indictment highlights the growing need for investor education and tighter regulation around religiously marketed cryptocurrencies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.