A Denver, Colorado-based online pastor and his wife were indicted Tuesday on charges related to a cryptocurrency fraud scheme that raised more than $3 million from faith-based investors.
Online pastor Eli Regalado and his wife, Kaitlyn, were indicted on 40 counts stemming from what Denver District Attorney John Walsh described as a “multi-million-dollar cryptocurrency scam.”
Between January 2022 and July 2023, the Regalados allegedly solicited almost $3.4 million by encouraging people in their religious network to buy INDXcoin, a token they created and sold through the Kingdom Wealth Exchange platform.
They spent at least $1.3 million on personal expenditures, including a home renovation that they claimed “the Lord” told them to do, while only a small amount of the proceeds went to the business venture.
According to the indictment, at least 300 people invested in the token, which authorities say “maintained zero value,” resulting in total losses for all investors.
“These charges mark a major step forward in our work to hold the Regalados accountable for their alleged crimes and to bring a measure of justice to the victims,” said Denver District Attorney John Walsh in a Tuesday press release, adding:
“I want to thank the prosecutors and investigators in my office, and, particularly, the investigators with the Colorado Division of Securities and the Colorado Attorney General’s Office, whose outstanding work on the case resulted in this indictment.”
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Pastor claims divine guidance
The indictment comes six months after the Colorado-based online pastor and his wife were charged with fraud for their role in issuing and marketing the INDXcoin scam token to their followers, Cointelegraph reported on Jan. 22.
“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,” stated Colorado Securities Commissioner Tung Chan at the time, adding:
“The complaint alleges that Regalado targeted Christian communities in Denver and claimed that God told him directly that investors would become wealthy if they put money into INDXcoin.”
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Cryptocurrency scams are a growing issue for retail investors. In May, an FBI-led investigation led to the arrest of a New Zealand-based man who allegedly stole $265 million worth of digital assets.
Authorities say the funds were used to buy luxury cars and designer goods.
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