Denver Pastor and Wife Indicted in $3 Million Cryptocurrency Fraud Scheme

According to Cointelegraph, a Denver-based online pastor, Eli Regalado, and his wife, Kaitlyn, have been indicted on charges related to a cryptocurrency fraud scheme that allegedly raised over $3 million from faith-based investors. The indictment, announced by Denver District Attorney John Walsh, includes 40 counts against the couple, who are accused of orchestrating a "multi-million-dollar cryptocurrency scam." Between January 2022 and July 2023, the Regalados reportedly solicited nearly $3.4 million by encouraging members of their religious network to invest in INDXcoin, a token they created and sold through the Kingdom Wealth Exchange platform. The indictment reveals that the couple spent at least $1.3 million on personal expenses, including a home renovation they claimed was directed by divine guidance, while only a minimal portion of the funds was allocated to the business venture. Authorities state that at least 300 individuals invested in the token, which allegedly held "zero value," resulting in significant financial losses for all investors involved. District Attorney Walsh emphasized the importance of these charges in holding the Regalados accountable and providing justice to the victims, acknowledging the efforts of prosecutors and investigators, particularly those from the Colorado Division of Securities and the Colorado Attorney General’s Office. The indictment follows previous fraud charges against the Regalados for their involvement in promoting the INDXcoin scam token to their followers, as reported by Cointelegraph in January 2025. Colorado Securities Commissioner Tung Chan accused Eli Regalado of exploiting the trust and faith of his Christian community by making extravagant promises of wealth through investments in essentially worthless cryptocurrencies. Chan highlighted that Regalado allegedly targeted Christian communities in Denver, claiming divine instruction that investors would gain wealth by investing in INDXcoin. Cryptocurrency scams continue to pose challenges for retail investors, with recent incidents underscoring the issue. In May, an FBI-led investigation resulted in the arrest of a New Zealand-based individual accused of stealing $265 million worth of digital assets. Authorities reported that the stolen funds were used to purchase luxury cars and designer goods, illustrating the ongoing threat posed by fraudulent schemes in the cryptocurrency sector.