A Denver pastor and his wife have been indicted on multiple felony charges for allegedly running a $3.4 million cryptocurrency scam. Eli Regalado, who ran the online Victorious Grace Church, and his wife Kaitlyn Regalado are accused of defrauding members of their own Christian community through a cryptocurrency they created called INDXcoin.
The Alleged Scam: Faith and Finances Collide
According to the Denver District Attorney's office, the Regalados solicited nearly $3.4 million from investors, promising them a “wealth transfer” ordained by God. Eli Regalado reportedly told his parishioners that God directed him to start the cryptocurrency and a related marketplace, Kingdom Wealth Exchange. However, investigators say only a small fraction of the money went towards the business. Instead, a significant portion, at least $1.3 million, was allegedly used for personal expenses.
Lavish Spending and False Promises
The indictment alleges that the Regalados spent the money on plane tickets, car payments, and even a home renovation that Eli Regalado claimed “the Lord” instructed them to do. Furthermore, investigators claim the couple knew they were deceiving investors when they promoted INDXcoin as a safe and profitable investment, even after an audit revealed it was neither safe nor stable.
- The charges: The couple faces 40 felony charges, including theft, securities fraud, and racketeering.
- The victims: Approximately 300 investors, many from their own church community, were allegedly defrauded.
- The defense (sort of): In a now-deleted video, Eli Regalado admitted to pocketing the money but insisted “God is not done with this project.”
District Attorney John Walsh stated, “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.” The Regalados are scheduled to appear in court for a bail hearing. The case also involves a civil court bench trial where the Colorado Securities Commissioner is seeking a permanent injunction, a freeze on the Regalados’ assets, and $3.4 million in restitution.