Denver Pastor Couple Indicted in $3.4M Religious Crypto Scam

Eli and Kaitlyn Regalado, a Denver pastor and his wife, were indicted on 40 criminal counts for allegedly defrauding investors of approximately $3.4 million through a cryptocurrency scam involving INDXcoin, which they promoted using faith-based appeals within their Christian community. The couple used their online church, Victorious Grace Church, to market the token, claiming it was divinely inspired and would bring substantial, stable returns, but prosecutors say INDXcoin maintained zero value, resulting in total losses for investors. Investigations revealed that only a small portion of the funds went toward the cryptocurrency venture, with at least $1.3 million spent on personal expenses, including a home renovation the couple claimed was directed by God. Denver District Attorney John Walsh emphasized the effort to hold the Regalados accountable and bring justice to the victims, while regulators are seeking injunctions, asset freezes, and restitution. The Regalados argued in court that INDXcoin was a utility coin for faith-based communities rather than a security, though this defense is part of ongoing legal proceedings. The case highlights concerns over exploiting religious faith to perpetrate financial fraud through digital assets.