Legal Troubles for Pastor Eli Regalado
Eli Regalado, a pastor operating out of Denver, alongside his wife Kaitlyn, is facing serious legal troubles following an indictment for allegedly masterminding a fraudulent cryptocurrency scheme that swindled over $3 million from investors within their religious community. Denver’s District Attorney John Walsh has officially announced that they are charged with 40 counts in what has been described as a “multi-million-dollar cryptocurrency scam.”
Details of the Allegations
The allegations point to the couple’s activities from January 2022 to July 2023, during which they reportedly raised close to $3.4 million by enticing members of their faith-based network to invest in a cryptocurrency known as INDXcoin, which they themselves created and marketed through a platform named Kingdom Wealth Exchange. Intriguingly, the indictment specifically states that a significant portion of the funds, approximately $1.3 million, was diverted to personal expenditures. This included renovations to their home, which they claimed were divinely inspired, while only a fraction was actually utilized for business purposes.
Impact on Investors
It has come to light that at least 300 individuals invested in INDXcoin, which, according to authorities, had no real value. This resulted in substantial financial losses for the investors, prompting District Attorney Walsh to stress the importance of pursuing these charges to ensure accountability for the Regalados and, ultimately, justice for the victims involved. He praised the diligent work of prosecutors and investigators from the Colorado Division of Securities and the Colorado Attorney General’s Office in uncovering these deceptive practices.
Previous Allegations and Broader Issues
This indictment adds to prior allegations against the Regalados, who had previously faced fraud accusations for their role in promoting the INDXcoin token to their followers, a situation reported by Cointelegraph in January 2025. Colorado Securities Commissioner Tung Chan criticized Eli Regalado for allegedly betraying the trust of his Christian followers by making lavish promises of wealth through investments in what turned out to be nearly worthless cryptocurrencies. Chan specifically noted that Regalado’s operations were often aimed at Christian congregations in Denver, where he claimed divine revelation assured potential investors of financial prosperity from their contributions to INDXcoin.
Ongoing Threats in Cryptocurrency
The case highlights a broader issue within the cryptocurrency landscape where scams targeting unsuspecting retail investors remain prevalent. Just this past May, the FBI executed a sting operation that culminated in the arrest of a New Zealander accused of orchestrating a theft of digital assets valued at $265 million, with the stolen funds reportedly used to indulge in luxury vehicles and high-end fashion. This incident underscores the persistent threat posed by fraudulent schemes in the fast-evolving cryptocurrency market.
