DENVER, Colo. – A Denver pastor and his wife are facing serious legal consequences after being indicted on 40 felony charges for allegedly running a fraudulent cryptocurrency scheme that netted over $3.4 million from unsuspecting investors.
Eli and Kaitlyn Regalado, founders of the online Victorious Grace Church, were indicted by a Denver grand jury in July on charges including theft, securities fraud, and racketeering. The couple is accused of using religious influence to sell INDXcoin, a faith-themed cryptocurrency described by regulators as “essentially worthless.”
Exploiting Faith for Profit
According to the Denver District Attorney’s Office, the Regalados targeted members of the Christian community from January 2022 to July 2023, making extravagant promises of wealth while invoking divine direction.
Court records show that only a small portion of the money went into the crypto venture. Instead, the couple allegedly spent at least $1.3 million on personal luxuries such as:
A Range Rover
Home renovations (claimed to be ordered by “the Lord”)
Over $90,000 in travel and entertainment
Despite their promises, INDXcoin held no actual value, and all investors lost their money, authorities said.
Defiant Response and Pending Civil Case
In a YouTube video posted on July 4, 2024, Eli Regalado denied wrongdoing, accused Colorado Securities Commissioner Tung Chan of corruption, and challenged her to buy INDXcoin herself.
“You’re a liar, liar, liar… Shame on you. You’re a crook,” he said in the video.
The couple also claimed they donated:
$290,000 to their own church
$245,000 to other churches
“It’s our church. Where else are we going to tithe?” Regalado said.
They argue that INDXcoin was a utility token, not a security, and therefore did not require registration.
Ongoing Legal Fallout
The pair also face a civil trial judgment where Commissioner Chan has sought a permanent injunction, asset freeze, and $3.4 million in restitution.
“These charges mark a major step forward in our work to hold the Regalados accountable,” said District Attorney John Walsh. “This is about justice for those who trusted them.”
The couple is scheduled to appear in court on Thursday.
