Colorado Pastor Accused of Fraud Says “The Lord” Helped Orchestrate $3M Crypto Scheme

A Colorado pastor for an online church, Eli Regalado, is accused of defrauding investors of more than $3.2 million through a cryptocurrency marketplace he ran with his wife, Kaitlyn Regalado. The couple, who operated the Kingdom Wealth Exchange, allegedly targeted the Christian community, promising divine blessings through investment in their cryptocurrency, INDXcoin.

Investigators with the Colorado Division of Securities found that from June 2022 to April 2023, INDXcoin raised about $3.2 million from over 300 people. The currency was described as illiquid and essentially worthless, yet the Regalados used at least $1.3 million of the funds to support a lavish lifestyle, including luxury items and home renovations.

The Regalados, who shut down the exchange in November 2023, are accused of violating Colorado’s securities laws by failing to register their cryptocurrency venture. They are alleged to have used the funds to finance a Range Rover and other personal expenses, despite claiming divine guidance for their financial decisions.

In a video statement to followers, Eli Regalado admitted the charges against him and his wife are true, stating that half a million dollars went to the IRS and a few hundred thousand to a home remodel, which he claimed was divinely instructed. He expressed belief that God would bring a financial miracle to INDXcoin.

The Regalados’ promotional materials to fellow pastors and evangelical Christians emphasized prayer and biblical quotes, encouraging investors to trust in the promise of abundance and blessings through their cryptocurrency. The couple also claimed to support causes for widows and orphans, though investigators say these payments primarily benefited the Regalados themselves.

The couple, who had no prior experience in cryptocurrency, are accused of engaging in fraudulent practices by misleading investors about the value and legitimacy of INDXcoin. Their church, Victorious Grace Church, operates from their home and travel locations, with the Regalados as its sole employees.

The case highlights the risks of investing in unregistered financial ventures and the importance of due diligence. It also underscores the need for transparency and accountability in the use of funds, especially when religious leaders are involved in financial activities. (Proverbs 31:8-9), (Ephesians 5:11)

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