- Denver pastor and wife accused of defrauding over 300 people in a crypto-scam
- Couple faces charges for their misleading INDXcoin scheme, exploiting church community trust
A pastor and his wife from Denver, Colorado, have found themselves at the center of a significant controversy. On 16 January, the Colorado Securities Commissioner, Tung Chan, filed civil fraud charges against Eligio (Eli) and Kaitlyn Regalado.
Core of the crypto-scam
The complaint stated that from June 2022 to April 2023, the Regalados raised nearly $3.2 million from over 300 individuals through their cryptocurrency scheme. Tung Chan has alleged violations of the Colorado Securities Act’s anti-fraud, licensing, and registration provisions.
At the center of this scam was a digital currency they named “INDXcoin.” It also involved a Kingdom Wealth Exchange (KWE). The Regalados established, managed, and operated this online cryptocurrency exchange platform, where they made this digital currency available.
Source: INDXcoin
The Lord told us to do
The couple marketed INDXcoin to members of the Christian community. Their presentations reportedly included prayer and biblical quotes. They also claimed to be supporting charitable causes such as helping widows and orphans. Additionally, Eli Regalado claimed that divine guidance assured him that investors would become wealthy.
However, this deceit took a dramatic turn when the pastor admitted in an online video statement to pocketing $1.3 million. He stated,
“But out of that $1.3 million, half of it went to the IRS, and $200,000 went to a home remodel that the Lord told us to do.”
However, the state’s investigation paints a more troubling picture of the couple’s expenditures, which included luxury items and personal indulgences like a luxury SUV, jewellery, cosmetic dentistry, boat rentals, and snowmobile adventures.
Church leaders turned crypto-entrepreneurs
The Regalados ran the online-only Victorious Grace Church, but their venture into cryptocurrency was marked by inexperience and recklessness. A third-party auditor’s report described their INDXcoin code as unsafe, unsecured, and riddled with serious technical problems.
Despite this, the couple continued to promote INDXcoin as a low-risk, high-profit investment. The Colorado Securities Commissioner emphasized the gravity of the situation, stating,
“We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies.”
The couple’s actions have left a trail of disillusioned investors. INDXcoin has turned out to be illiquid and practically worthless.
As the case unfolds, the Colorado Attorney General’s Office is seeking preliminary and injunctive relief, damages for investors, and a constructive trust on the Defendants’ property. The Regalados are scheduled to appear in court on 29 January 2024.
