Colorado Pastor and Wife Barred from Selling Crypto After $3 Million Fraud Scheme
A Colorado pastor and his wife have been prohibited from selling cryptocurrency in the state and will have their accounts frozen by regulators after being accused of orchestrating a $3 million crypto fraud scheme. The couple, Eli Regalado and Kaitlyn Regalado, launched their own cryptocurrency called INDXcoin through the Kingdom Wealth Exchange, a faith-based crypto exchange they created. They targeted Christian communities in Denver and claimed that God told them directly that investors would become wealthy if they put money into INDXcoin. Prosecutors revealed that the couple spent a large portion of the funds on personal expenses while knowing that INDXcoin was essentially worthless.
Uncovering the $3 Million Crypto Fraud
Last week, Pastor Eli Regalado and his wife, Kaitlyn Regalado, were charged with fraud by the Colorado Division of Securities after it was discovered that they had pocketed $1.3 million worth of crypto. The couple launched their own cryptocurrency called INDXcoin through the Kingdom Wealth Exchange, a faith-based crypto exchange also created by them.
The Role of INDXcoin in the Crypto Scheme
The Regalados raised over $3.2 million from more than 300 people for their scheme. They spent a significant amount on personal expenses such as a Range Rover, home renovations, and cosmetic dentistry. Despite knowing that INDXcoin was essentially worthless according to an auditor’s report, they continued to promote it as a low-risk, high-profit investment.
“God is not done with INDXcoin”
In a now-deleted video from INDXcoin’s website, Eli Regalado admitted to the charges brought against him and his wife. He claimed that some of the money went to the IRS and for home renovations as instructed by God. He also stated that “God is not done with INDXcoin.” The Regalados did not attend Monday’s hearing, and the judge described the case as one of the more egregious instances where someone preyed upon their congregants in the name of faith.
Hot Take: Judge Orders Continued Freezing of Colorado Crypto Pastor’s Accounts After $3 Million Crypto Fraud Scheme
A Colorado judge has ruled that a pastor and his wife accused of orchestrating a $3 million crypto fraud scheme will have their accounts frozen and be barred from selling cryptocurrency in the state. The couple launched their own cryptocurrency called INDXcoin, targeting Christian communities and claiming that investing in it would make them wealthy as directed by God. Despite knowing that INDXcoin was essentially worthless, they spent a large portion of the funds on personal expenses. In a deleted video, the pastor admitted to pocketing $1.3 million and stated that “God is not done with INDXcoin.” The judge expressed disappointment at how someone exploited their congregants in the name of faith.
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