Colorado Pastor and Wife Indicted in $3.4 Million Crypto Fraud Scheme

By: Eliza Bennet

A Denver-based online pastor, Eli Regalado, and his wife, Kaitlyn, have been indicted on charges related to a cryptocurrency fraud scheme that reportedly swindled over $3 million from unsuspecting faith-based investors. The couple allegedly orchestrated the scam by promoting a cryptocurrency token named INDXcoin to their religious network, which led to financial losses for at least 300 investors.

According to the indictment, the Regalados told their followers that INDXcoin was a credible investment and leveraged their religious authority to solicit nearly $3.4 million between January 2022 and July 2023. They operated their scheme through a platform called Kingdom Wealth Exchange, manipulating investor trust by falsely claiming divine endorsement. Eli Regalado allegedly stated that "God told" him to promote the investment, adding a layer of spiritual persuasion to their tactics.

Denver District Attorney John Walsh described the couple's fraudulent activities as a "multi-million-dollar cryptocurrency scam committed under the guise of religious authority." The indictment reveals that the funds raised were not used as promised but instead spent on personal luxuries such as cosmetic dentistry, designer handbags, snowmobiles, and lavish vacations, according to investigators.

This case underscores the susceptibilities of new and faith-based investors in the volatile cryptocurrency market, especially when schemes are cloaked with religious trust. The legal proceedings are ongoing, with potential severe repercussions for the Regalados.