Grand Jury Indicts Denver Pastor and Spouse Over $3.4 Million Crypto Scheme
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A grand jury in Denver District Court indicted Eligio “Eli” Regalado and his wife, Kaitlyn Regalado, on 40 felony charges, including theft, racketeering, and securities fraud.
Between January 2022 and July 2023, the couple allegedly ran a crypto scam that generated $3.4 million from nearly 300 faith-based investors.
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Faith-Based Token “INDXcoin” Maintained No Value
The Regalados double as the founders of Victorious Grace Church, an online-only ministry, and creators of INDXcoin, a Christian-themed cryptocurrency now at the center of a major crypto scam.
The token, wrapped in the language of faith, was sold to investors, who were told it offered a God-inspired opportunity to build wealth and sow into the Kingdom.
However, according to the Denver District Attorney’s Office, INDXcoin was worthless, resulting in significant losses for investors.
The indictment documents revealed that the couple spent at least $1.3 million on personal expenses. This includes home renovations, a Range Rover, and more than $90,000 in travel and entertainment. They reportedly justified these expenses as directives from “the Lord”.
The indictment follows a civil case filed in May by Colorado Securities Commissioner Tung Chan, who sought to freeze the couple’s assets, ban them from future financial activities and secure $3.4 million in restitution.
Investigators found that INDXcoin had no practical utility and had never been traded on any legitimate exchange.
In court filings, the Regalados couple maintains that the INDXcoin was never intended to be an investment. They claimed it was a “utility coin” designed to help people join faith-based communities, not a financial product requiring regulation.
However, authorities argue that their fundraising strategy, promise of high returns, and personal enrichment expose the venture as a deliberate fraud.
Investment-Based Crypto Scam Wave Spreads Far and Wide: Is Anyone Safe?
The Regalados’ case is far from isolated. It reflects a disturbing surge in cryptocurrency frauds that prey on trust, whether through religious affiliation, fake businesses, or fabricated investment platforms.
Just last week, the U.S. Attorney’s Office in Seattle filed a civil case to seize more than $7.1 million in cryptocurrency tied to an international oil and gas investment scam.
The fraud involved fake escrow accounts and shell companies like Apex Oil and Gas Trading LLC and Green Tree Gateway LLC. Once victims wired funds, the perpetrators disappeared without fulfilling any of their promises.
U.S. commences civil action to forfeit $7.1 million in cryptocurrency tied to oil and gas storage fraud scheme – Crypto seized from wallets tied to Russian and Nigerian IP addresses https://t.co/LoCQb0yC06
— WDWAnews (@WDWAnews) July 22, 2025
Similarly, in the UK, the Financial Conduct Authority (FCA) prosecuted Raymondip Bedi and Patrick Mavanga for a cold-calling crypto scam that tricked at least 65 people out of over £1.5 million (about $2.1 million).
The pair created fake investment platforms and dashboards to show false profits. Victims believed they were growing their wealth, only to realize too late that it was all an illusion.
Last month, five men admitted to laundering nearly $37 million from American victims in an investment-based crypto scam. These fraudsters gradually built trust by introducing fake crypto investment opportunities.
Like the other scams, victims watched fabricated returns grow while their real money vanished.
Each crypto scam operates on a common pattern: they exploit trust, offer unrealistic gains, and vanish once the funds are collected. Whether through faith, fake companies, or flashy tech, the results are the same: people lose everything.
