Denver Pastor and Wife Indicted in Alleged $3.4M Cryptocurrency Scam
A Denver grand jury has indicted a local pastor and his wife on 40 felony counts, accusing the pair of orchestrating a cryptocurrency scheme that defrauded investors out of $3.4 million. Eligio “Eli” Regalado and his wife Kaitlyn allegedly used their church connections and faith-based messaging to convince nearly 300 people to invest in a religious-themed digital currency called INDXcoin. Prosecutors say the currency, launched under the banner of the online-only Victorious Grace Church, was essentially worthless.
The scheme is alleged to have occurred between January 2022 and July 2023. While the Regalados promised extravagant returns and claimed their project was divinely inspired, investigators say the majority of the funds went toward personal spending. According to the indictment, at least $1.3 million of investor money was used for non-business expenses, including home renovations, travel, entertainment, and a Range Rover. The couple also claimed God instructed them to use some of the money for personal improvements.
In a recent YouTube video, Eli Regalado maintained his innocence, calling Colorado Securities Commissioner Tung Chan “a crook” and defending the couple’s use of funds, saying they tithed $290,000 to their own church and gave another $245,000 to outside ministries. “Where else are we going to tithe?” he said. “That’s where God had us in our assignment.” He also claimed INDXcoin was a “utility coin” used to join faith-based communities, and therefore not subject to state securities laws.
Colorado officials disagree. Chan’s office stated the cryptocurrency was not properly registered and that the Regalados made outlandish promises of wealth based on their religious standing. “We allege Mr. Regalado took advantage of the trust and faith of his own Christian community,” Chan said in a statement earlier this year. “All of the investors lost all of their money.”
In addition to the criminal case, the Regalados are awaiting a ruling in a civil court trial from May, in which the Colorado Division of Securities is seeking restitution and a freeze of the couple’s assets. Denver District Attorney John Walsh called the indictments a “major step forward” in holding the pair accountable and bringing justice to the defrauded victims.
The Regalados are scheduled to appear in court on Thursday.
