Denver Pastor And Wife Indicted In Multi-Million Dollar Cryptocurrency Scam
Danielson, CO — Online pastor Eli Regalado and his wife Kaitlyn, based in Denver, Colorado, were indicted Tuesday on 40 counts related to a cryptocurrency fraud scheme. The alleged scheme raised over $3 million from faith-based investors between January 2022 and July 2023.
The indictment details charges of wire fraud and money laundering arising from what Denver District Attorney John Walsh termed a “multi-million-dollar cryptocurrency scam.” Regalado and his wife allegedly solicited nearly $3.4 million by encouraging members of their religious network to invest in INDXcoin, a token issued through the Kingdom Wealth Exchange platform.
Authorities contend that Regalado and his wife used the illiquid and allegedly worthless INDXcoin for personal expenditures. These include significant luxury home renovations, amounting to hundreds of thousands of dollars, which the indictment suggests they claimed were inspired and directed by “the Lord.” Only a small portion of the illicit funds was reinvested into the venture itself.
Indictment. Source: denverda.org
Daniel Walsh acknowledged the extensive investigative collaboration in a Tuesday press release announcing the indictment:
“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. 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.”
Indictment details reveal that at least 300 individuals poured over $3.4 million into the INDXcoin scam, resulting in total losses, as the token allegedly held zero real value and remained illiquid. At one point, Regalado professed divine endorsement, allegedly claiming “God told him directly that investors would become wealthy if they put money into INDXcoin,” according to Colorado Securities Commissioner Tung Chan.
Fraud Allegations Confirmed
This indictment represents a formal legal step following prior allegations. Earlier this year, Cointelegraph reported on Regalado’s January 22 indictment, alleging recruitment from a Colorado base to issue and market the fraudulent INDXcoin token.
“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.”
Taking a broader view: cryptocurrency scams remain a significant challenge for retail investors. A related FBI investigation in May led to the arrest of a New Zealand national accused of stealing $265 million in digital assets.
Source: New Zealand Police
Ill-timed schemes often have devastating consequences for victims. Authorities in the NZ case stated the illicit funds were used for luxury cars and designer goods.
