Denver Pastor and Wife Charged in Cryptocurrency Fraud Case
Denver-based pastor Eligio “Eli” Regalado and his wife, Kaitlyn Regalado, have been indicted on multiple counts, including theft and securities fraud, in connection with an alleged cryptocurrency scam. The Denver District Attorney’s Office revealed last week that the couple is facing 40 charges for their involvement in soliciting $3.4 million from investors who intended to purchase their cryptocurrency, INDXCoin. Reports indicate that only a minor portion of the funds was directed towards the intended business venture.
Allegations of Misuse of Investor Funds
According to prosecutors, the Regalados allegedly diverted at least $1.3 million from the investment funds for personal expenditures. These expenses reportedly included a home renovation project they claimed was divinely inspired, as well as travel costs for airline tickets, motel stays, and luxury retail items. Prosecutors have asserted that the cryptocurrency itself is effectively worthless, leading to complete financial losses for the investors involved.
Regalados Contest Security Classification
The Regalados maintain that INDXCoin should not be classified as a security, which is a financial instrument that requires registration and licensing. Instead, they describe the coin as a “utility coin,” meant to offer users access to online faith-oriented communities.
Current Legal Status of the Regalados
The couple was taken into custody earlier this month but has since been released on a $100,000 property bond. A judge has mandated that they undergo “intensive pretrial supervision” and surrender their travel documents. They appeared in court without legal representation, stating that they do not qualify for public defenders. Their next court date is scheduled for September 11.
Inspirational Claims Around INDXCoin
According to the indictment, Eli Regalado claims he received divine inspiration for INDXCoin in October 2021. He reportedly encouraged his followers to invest by assuring them that “God” had instructed him and his wife to develop the cryptocurrency. The couple prompted investors to trust that their contributions would yield “abundance” and “blessings.”
Investors and Civil Charges Filed
Between January 2022 and July 2023, the Regalados allegedly collected funds from approximately 300 investors who believed their contributions would support INDXCoin and its associated trading platform, the Kingdom Wealth Exchange. In January 2024, Colorado Securities Commissioner Tung Chan filed civil charges against the couple, alleging violations of anti-fraud, registration, and licensing regulations under the Colorado Securities Act. Subsequently, the Denver District Court imposed a preliminary injunction and froze the couple’s assets.
Regalados’ Defense and Ongoing Legal Proceedings
Chan’s office is pursuing the freezing of the Regalados’ assets, a permanent injunction, and $3.4 million in restitution. The couple has denied any intention to defraud their investors, asserting that their actions were motivated by their religious beliefs and faith in the project. Eli Regalado previously posted a video refuting the allegations and asserting that INDXCoin is not a security. A bench trial was conducted in May, and the couple is currently awaiting a decision from the judge.
