Grand Jury Charges Pastor, Wife in Alleged Multi-Million Dollar Cryptocurrency Scam
A Denver couple, Eli and Kaitlyn Regalado, face 40 felony counts related to a multi-million dollar cryptocurrency scam. The Denver District Attorney’s office announced the indictment, charging the pair with theft, fraud, and deceit stemming from their operation of Kingdom Wealth Exchange and the sale of their cryptocurrency, INDXcoin.
The Regalados, who are married and operate Victorious Grace Church from their home, allegedly targeted fellow Christians, soliciting nearly $3.4 million between 2022 and July 2023. Their scheme promised substantial returns on investment in INDXcoin, a cryptocurrency they claimed was designed to mirror the performance of the top 100 cryptocurrencies, thus mitigating risk. However, the indictment alleges this was a deceptive claim. INDXcoin held virtually no value, resulting in significant financial losses for over 300 investors.
The indictment details how the Regalados misrepresented the coin’s value and liquidity, failing to disclose its lack of underlying assets and its inability to maintain a stable value pegged to other major cryptocurrencies. Instead of investing the funds, they allegedly spent approximately $1.3 million of the proceeds on personal expenses, including home renovations.
Eli Regalado, a pastor at Victorious Grace Church, and his wife, Kaitlyn, the church’s sole other employee, preyed upon the trust of their congregation and other Christian communities. Their actions represent a significant breach of that trust.
The Colorado Securities Commissioner, Tung Chan, initially filed charges against the couple last year. In a video message released in March, Eli Regalado acknowledged the charges as true, attributing the venture to what he believed was divine guidance. He described receiving instructions from God to abandon his parking company and pursue the cryptocurrency endeavor, a path he now admits led to a fraudulent scheme.
The indictment highlights the dangers of unregulated investments and the vulnerability of religious communities to such schemes. The case underscores the importance of thorough due diligence and skepticism towards promises of exceptionally high returns in the volatile cryptocurrency market. The Regalados’ actions not only resulted in substantial financial losses for their investors but also represent a profound betrayal of faith and trust.
