Denver Pastor and Wife Indicted for $3.4 Million Cryptocurrency Scam Citing Divine Instruction
Denver authorities have indicted pastor Eligio ‘Eli’ Regalado and his wife, Kaitlyn Regalado, on 40 criminal counts relating to a $3.4 million cryptocurrency fraud scheme. The couple allegedly solicited funds from investors to purchase their digital currency, INDXCoin, which prosecutors say has no value and left investors with total losses.
According to the Denver District Attorney’s Office, the Regalados collected millions from unwitting investors but diverted more than $1.3 million toward personal expenses rather than the stated business purpose. These expenditures included a home renovation—purportedly done under ‘the Lord’s’ instruction—airline tickets, motel stays, and luxury merchandise.
The charges filed include theft, securities fraud, and racketeering. Prosecutors emphasize that the digital coin, INDXCoin, was essentially worthless and that all the investors lost their money. The couple has defended themselves by arguing that INDXCoin is a “utility coin” used to access online faith-based communities rather than a security, thereby exempting it from licensing and registration requirements.
This case follows a similar pattern to another recent cryptocurrency scam involving a Washington pastor, Obando Pinillo, who faces federal fraud charges in connection with a multi-million dollar crypto fraud scheme.
The Denver case underscores increasing concerns over fraudulent cryptocurrency ventures, especially those exploiting religious faith and trust. Investigators urge investors to exercise caution and conduct thorough due diligence before engaging in such ventures.
Both Eli and Kaitlyn Regalado remain at large, and their case is pending prosecution. The Denver District Attorney’s detailed indictment reflects a broader crackdown on crypto-related fraud schemes nationwide.
As cryptocurrency becomes more mainstream, authorities continue to warn that investors should scrutinize offers carefully—particularly when linked to religious figures who might misuse their influence for personal gain.