A Colorado pastor and his wife are facing charges related to an alleged multimillion-dollar cryptocurrency scheme that targeted hundreds of local Christians.
Prosecutors claim that Pastor Eli Regalado and his wife, Kaitlyn, fraudulently raised over $3 million by selling a cryptocurrency named INDXcoin, which they created, marketed, and sold through their online platform, Kingdom Wealth Exchange.
The allegations suggest that the Regalados, who lacked experience in cryptocurrency, knowingly deceived investors by promoting INDXcoin as a “low-risk, high-profit” investment.
Despite a third-party auditor flagging INDXcoin as “unsafe, unsecured, and riddled with technical problems,” the couple continued to market it as a valuable asset. Prosecutors assert that between June 2022 and April 2023, the Regalados pocketed at least $1.3 million from unsuspecting investors.
According to court filings, Pastor Regalado claimed that his plan was divinely inspired, stating that “God told him directly that investors would become wealthy” by investing in INDXcoin. The cryptocurrency was offered exclusively to Denver-area Christians through the Kingdom Wealth Exchange.
The complaint reveals that INDXcoin turned out to be illiquid and practically worthless, contrary to the Regalados’ promises. The funds raised were allegedly used for the couple’s extravagant lifestyle, including purchases such as a Range Rover, luxury handbags, jewelry, boat rentals, and snowmobile adventures.
Colorado Securities Commissioner Tung Chan has filed civil fraud charges under the Colorado Securities Act, citing violations of anti-fraud protections. The charges were prompted by multiple complaints from investors who lost money after investing in INDXcoin.
Pastor Regalado responded to the allegations in a video statement, admitting that the cryptocurrency investors faced difficulties withdrawing funds. He attributed the failure to technical issues with the exchange technology and claimed to have been “waiting on the Lord” for a resolution.
In response to the accusation that the couple received $1.3 million, Pastor Regalado acknowledged it, stating that half of the amount went to the IRS, and $200,000 was used for a home remodel, supposedly guided by divine instruction.
As legal proceedings unfold, Colorado prosecutors are seeking preliminary and injunctive relief, damages for investors, and the establishment of a constructive trust on the Regalados’ property. The couple is scheduled to appear in Denver District Court next week to address the charges.