Denver Pastor Found Guilty of Cryptocurrency Fraud
Date: 2025-09-18 Author: Gabriel Deangelo Categories: IN WORLD
A high-profile case against Pastor Eli Regalado and his wife, Kaitlyn, has concluded in Denver. A court found them guilty of securities fraud related to the INDXcoin cryptocurrency project. According to investigators, the couple defrauded members of their Christian congregation of approximately $3.4 million by offering them participation in a knowingly fictitious token.
Regalado and his wife convinced investors that their digital asset was safe and capable of generating high returns with minimal risk. They created their own platform, Kingdom Wealth Exchange, for trading, but it shut down the very next day after its launch. An audit of the project revealed a complete security breach—experts rated the code a "0 out of 10." Despite this, the pastor continued to publicly assert that INDXcoin was a reliable investment.
The story gained traction in January 2024 after Regalado published a video message. In it, he admitted that approximately $1.3 million had been spent on the family's personal needs, including taxes and home renovations. The pastor attributed this to "God's will," claiming he was waiting for a miracle to correct the situation.
Court proceedings revealed that the investors' money had also been spent on a Range Rover, jewelry, designer clothing, dental procedures, and expensive trips—from ski resorts to yacht charters. The couple had no other sources of income.
By April 2025, the court had already found that INDXcoin met the criteria for an investment asset under Colorado law. A new ruling on September 12 confirmed that the project was fraudulent from the outset. Regalado, his wife, and their company, INDXcoin LLC, are now ordered to pay $3.34 million in compensation to the victims.
In the summer of 2025, a jury also indicted the couple on 40 counts of criminal indictment, including fraud and misappropriation of funds.
Colorado Securities Commissioner Tung Chan called Regalado and his wife "false prophets of the 21st century." She said they exploited the trust of believers and the popularity of cryptocurrencies to make a classic financial scam look like an innovative project.
This case has become a striking example of how religious ties and fashion trends can be used to cover up deception, and investors can lose their savings, believing in "holiness" and promises of quick profits.
