Pastor Duo Creates Fake Crypto and Scams Worshippers

A Colorado couple who claimed God told them to launch a cryptocurrency are now staring down 40 felony charges, accused of fleecing their own faith community out of millions in a scheme that redefines the word “shameless.”

At a Glance

Denver-based pastor Eli Regalado and his wife, Kaitlyn, indicted on 40 felony counts tied to a $3.4 million cryptocurrency scam.
The couple allegedly used their spiritual authority to peddle a worthless token, INDXcoin, to trusting Christian investors.
Over 300 faith-based investors lost their money; at least $1.3 million was spent on personal luxuries under the guise of divine instruction.
Prosecutors and regulators are seeking asset freezes, restitution, and jail time for the accused.

Faith Exploited: The INDXcoin Cryptocurrency Scheme Unravels

The Regalado saga began in January 2022, when Eli and Kaitlyn Regalado, self-styled faith leaders of the online Victorious Grace Church, convinced their religious followers that investing in their newly minted INDXcoin was not just smart—it was divinely ordained. Their pitch? “God told us to do this.” For many in the tight-knit Denver Christian community, that was enough. Hundreds poured savings into the cryptocurrency, trusting the couple’s claims of both heavenly approval and financial reward. But by July 2023, the truth emerged: the Regalados had raked in nearly $3.4 million, leaving every last investor with empty pockets and a “token” that prosecutors say was never worth a dime.

Using the pulpit as a megaphone, the Regalados wove God into every aspect of their pitch. They hosted online sermons and private chats, using their pastoral credentials to build credibility. They pushed INDXcoin through the so-called Kingdom Wealth Exchange, promising “kingdom returns” and divine favor to anyone bold enough to invest. Yet, according to investigators, it was all smoke and mirrors. Of the millions the couple collected, only a sliver went to anything resembling business expenses. At least $1.3 million, authorities allege, was diverted into personal luxuries—most notably a lavish home renovation that the couple laughably claimed was at God’s direction. The rest? Gone, with no trace, and not a single investor seeing a cent in return.

Criminal Indictment: The Hammer Drops on the Regalados

On July 23, 2025, a Denver grand jury indicted Eli and Kaitlyn Regalado on 40 felony counts, including racketeering, theft, and securities fraud. The charges follow months of civil litigation and a relentless investigation by the Denver District Attorney’s Office, the Colorado Division of Securities, and the Colorado Attorney General’s Office. Prosecutors aren’t mincing words: they accuse the Regalados of orchestrating classic affinity fraud—using their spiritual authority to target and bilk their own community. According to District Attorney John Walsh, “These charges mark a major step forward in our work to hold the Regalados accountable for their alleged crimes and to bring a measure of justice to the victims.” Colorado Securities Commissioner Tung Chan went further, warning, “We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies.”

The criminal case is now moving forward, with the state seeking not only prison time but full restitution for the victims and a freeze on all assets the Regalados still control. Meanwhile, a civil court bench trial is pending, with the state pushing for permanent injunctions to prevent the couple from ever soliciting investments again. The timeline is damning: the scheme began in January 2022, crumbled by July 2023, and has been in the crosshairs of prosecutors ever since. The message from law enforcement is clear—if you exploit faith for financial gain, you will be held to account.

Ripple Effects: Trust Shattered, Calls for Reform Mount

The Regalado case leaves a trail of devastation. Over 300 investors, many of them senior citizens and long-time members of the Denver Christian community, have lost not just their savings but their trust in both digital assets and the leaders who claimed to have their best interests at heart. The broader faith-based investment world is rattled, as is the already volatile cryptocurrency sector. Regulators and lawmakers are using this case as a rallying cry for tougher oversight of both digital assets and so-called “affinity fraud”—a tactic where scammers prey on tight-knit communities, be they religious, ethnic, or otherwise.

The financial fallout is immediate and severe: $3.4 million vanished, with little hope of recovery unless authorities can claw back assets. The social wounds run deeper. As Commissioner Chan noted, “New coins and new exchanges are easy to create with open source code. We want to remind consumers to be very skeptical.” This scandal is now fueling calls for mandatory investor education and tighter regulation of both cryptocurrency and any investment scheme that leans on faith, family, or patriotism to build trust. For conservatives who have watched the government sit on its hands while “woke” scammers and tech hucksters run amok, the Regalado case is yet another infuriating example of why vigilance, common sense, and constitutional accountability matter more than ever.

Expert Reactions: A Cautionary Tale for Faith and Finance

Industry experts agree: the Regalados’ downfall is a textbook case of affinity fraud supercharged by the Wild West of cryptocurrency. Faith leaders are now urging their congregations to ask tough questions before trusting any self-proclaimed prophet with their hard-earned money. Law enforcement officials are doubling down, using the case to warn all communities—religious or otherwise—to stay vigilant and demand transparency. With criminal and civil cases both underway, legal observers say the outcome may set a new precedent for prosecuting crypto scams that leverage faith or identity.

This case stands as a stark warning: when someone waves a Bible in one hand and a digital coin in the other, it’s time to dig deeper, do the research, and remember that blind trust can be a costly mistake. For every legitimate investment, there are a dozen wolves in sheep’s clothing, waiting to exploit faith, family, or patriotism for a quick buck. In the Regalados’ case, the reckoning has come—and not a moment too soon.