Denver Pastor and Wife Charged with Fraud for Selling Worthless Cryptocurrency to Christian Communities

A pastor and his wife in Denver, Colorado, face fraud charges for creating and selling a worthless cryptocurrency to Christian communities, leading to significant financial losses.
Denver Pastor and Wife Charged with Fraud for Selling Worthless Cryptocurrency to Christian Communities

Pastor and Wife Charged with Fraud for Creating and Selling Worthless Cryptocurrency to Christian Communities

A pastor and his wife in Denver, Colorado, have been charged with fraud for allegedly creating and selling a worthless cryptocurrency, INDXcoin, to members of the Christian community, authorities say.

According to a statement from the Colorado Division of Securities, Eli Regalado, the pastor, and his wife, Kaitlyn Regalado, created, marketed, and sold the cryptocurrency through their online exchange, Kingdom Wealth Exchange (KWE), from June 2022 to April 2023.

The complaint filed by the Colorado Attorney General’s Office alleges that the Regalados raised nearly $3.2 million from over 300 individuals and targeted Christian communities in Denver. Eli Regalado claimed that God told him directly that investors would become wealthy if they put money into INDXcoin.

However, a third-party auditor’s report described the INDXcoin code as unsafe, unsecure, and riddled with serious technical problems. Despite this, the Regalados continued to promote the INDXcoin as a low-risk, high-profit investment, even though it was illiquid and practically worthless, causing investors to lose millions of dollars and the Regalados to dissipate investor funds to support their ’lavish lifestyle'.

Commissioner Tung Chan of the Colorado Securities Division said, ‘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.’

The action seeks preliminary and injunctive relief, damages for investors, and a constructive trust to be placed on the Defendants’ property. The investigation into the Regalados’ dealings is currently ongoing, and anyone who invested with INDXCoin or any of the Regalados’ other entities is encouraged to contact the Colorado Division of Securities.

Impact on the Community

The fraudulent actions of the Regalados have had a significant impact on the Christian communities in Denver. Many individuals who trusted the pastor and his wife with their investments now face financial losses and uncertainty about the future. The exploitation of faith and trust for personal gain has shaken the foundations of these communities.

The charges of fraud brought against Eli and Kaitlyn Regalado highlight the importance of regulatory oversight in the cryptocurrency space. The case serves as a cautionary tale about the risks associated with unregulated digital assets and the need for investor protection.

Moving Forward

As the investigation unfolds, it is crucial for authorities to ensure that justice is served and that affected investors receive the necessary support. This case underscores the importance of due diligence and skepticism when considering investment opportunities, especially in emerging sectors like cryptocurrency.