A Denver grand jury indicted Pastor Eligio Regalado and his wife, Kaitlyn Regalado, on 40 counts of theft, securities fraud, and racketeering for operating a deceptive cryptocurrency scheme that preyed on their congregation.
Prosecutors allege the couple raised $3.4 million from roughly 300 investors between January 2022 and July 2023, diverting at least $1.3 million into personal expenses, including a major home renovation they claim was divinely instructed.
Eli Regalado and his wife Kaitlyn were just indicted in Colorado on 40 felony charges connected to their solicitation of almost $3.4 million for the INDXcoin scamhttps://t.co/sENnQacWex https://t.co/rhl4v3SK3v
— Molly White (@molly0xFFF) July 24, 2025
Prosecutors allege fraud, defendants cite divine guidance
According to the indictment, the Regalados peddled INDXcoin along with the associated Kingdom Wealth Exchange platform as a “God‑inspired” opportunity promising Christian followers “abundance” and “blessings.”
Yet, instead of safeguarding investors’ funds, they wired the capital into personal bank and Venmo accounts, bypassing any corporate safeguards.
An audit later found the digital coin was “neither secure nor safe,” and officials assert it carried zero intrinsic value despite their claims of combining “biblical kingdom principles of wealth creation” with the blockchain.
In January 2024, Colorado’s Securities Commissioner filed a civil action under the Colorado Securities Act, accusing the couple of violating anti‑fraud, licensing, and registration provisions.
A Denver judge subsequently froze their assets and barred them from selling securities pending trial.
After posting $100,000 property bonds earlier this month, the Regalados secured their release, but now face intensive pretrial supervision, including surrendered travel documents. Their next court date, September 11, could determine whether their followers ever see justice.
The couple continues to claim they did nothing wrong. They argue INDXcoin was a “utility token” rather than a security, and say they never meant to cheat anyone. Pastor Regalado even claims God told him in a 2021 dream to create the cryptocurrency as a “wealth transfer” for their church.
He described his legal woes as a “misunderstanding” of divine grace and blamed the fallout on poor execution rather than malicious intent.
Prosecutors are seeking full restitution of $3.4 million in investor losses.
When religion becomes a tool for crypto scammers
The Regalados’ case is quite new but far from unique. Across the U.S., fraudsters are increasingly exploiting religious trust to push fraudulent crypto schemes.
Former Washington State pastor Francier Obando Pinillo stands accused of running “Solano Fi,” a cryptocurrency investment scam that duped congregants out of millions.
Between November 2021 and October 2023, Pinillo promised a guaranteed monthly return of 34.9%. His custom app displayed fabricated account balances, while he barred withdrawals and funneled investors’ funds into personal accounts.
He pleaded not guilty at his arraignment in U.S. District Court in Richland, Washington.
In a separate case, Ian Freeman received an 8-year sentence for laundering over $10 million through a network of bitcoin ATMs disguised as churches. His “Crypto Church of New Hampshire” bypassed financial safeguards, enabling romance scams and other frauds.
