Denver Pastor and Wife Charged with Fraud for Alleged Cryptocurrency Scam Targeting Christian Communities
A Denver pastor and his wife face charges for creating a cryptocurrency and deceiving members of Christian communities to fund their ‘lavish lifestyle.’
Eli Regalado and his wife, Kaitlyn Regalado, stand accused of orchestrating a scheme that involved the creation, marketing, and sale of a cryptocurrency called "INDXcoin."
According to the Colorado Division of Securities, the Regalados crafted a carefully planned operation, targeting unsuspecting members of the Christian community. They utilized the Kingdom Wealth Exchange (KWE), an online cryptocurrency exchange they controlled, to lure investors into their scheme.
Pastor Eli Regalado says he and his wife Kaitlyn "took God at his word and sold a cryptocurrency with no clear exit"... then spent some of the money on "a home remodel the Lord told us to do." He'd promised the money would go to "widows and orphans."
On Thursday, Colorado Securities Commissioner Tung Chan filed civil fraud charges against Eligio (Eli) and Kaitlyn Regalado, along with the companies they allegedly used to distribute the coins. These charges include alleged violations of anti-fraud, licensing, and registration provisions outlined in the Colorado Securities Act.
The complaint filed by the Colorado Attorney General's Office reveals that investigators from the Colorado Division of Securities discovered that between June 2022 and April 2023, INDXcoin raised nearly $3.2 million from over 300 individuals.
The Regalados allegedly targeted Christian communities in Denver, claiming that God had spoken to Eli Regalado directly, assuring investors that they would amass great wealth by investing in INDXcoin.
Pastor Eli Regalado and his wife, Kaitlyn Regalado. The SEC has frozen their assets for two weeks and banned them from selling securities in Colorado.
The Colorado Division of Securities found that the Regalados had no prior experience in cryptocurrency. A third-party auditor's report, cited in the complaint, described the INDXcoin code as unsafe, unsecure, and plagued with significant technical issues. Despite these damning findings, the Regalados continued to promote the INDXcoin as a low-risk, high-profit investment.
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The investors who placed their trust and hard-earned money in the Regalados' scheme suffered substantial losses. The complaint alleges that the INDXcoin was "illiquid and practically worthless." The Regalados allegedly exploited the faith and trust of their own Christian community, dissipating investor funds to support their lavish lifestyle while leaving their victims in financial ruin.
"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," said Commissioner Chan in a statement.