A Denver-based online pastor, Eli Regalado, and his wife, Kaitlyn, are facing federal charges in connection with an alleged $3.4 million cryptocurrency scam that defrauded dozens of investors under the guise of a faith-based investment opportunity. The charges stem from their promotion of INDXcoin, a digital asset marketed through their platform, Kingdom Wealth Exchange, between January 2022 and July 2023.

Authorities alleged the couple used their religious influence and community trust to solicit funds for a fraudulent crypto trading platform, which prosecutors claim was nothing more than a sophisticated Ponzi scheme.

Furthermore, the couple targeted Christian believers, many of them vulnerable or financially strained, with promises that INDXcoin was divinely inspired. Eli Regalado, who had gained a following through his online prophetic teachings, claimed in multiple videos and live streams that the Lord had directed him to create the token and told him it would serve as a vehicle for supernatural wealth transfer among believers. He urged followers to “pray, listen, and invest” and to act quickly, warning that God’s opportunity to buy in would not last forever.

Eli Regalado Faces Allegations of Deception and Manipulation.

The couple spent at least $1.3 million on personal expenditures, including a home renovation that they claimed “the Lord” instructed them to undertake. At the same time, only a small portion of the proceeds went to the business venture.

Moreover, as their online presence grew, so did their pool of investors. Over 300 individuals reportedly sent funds, often their savings, into the INDXcoin project. The couple presented the token as a safe and God-ordained investment, with the potential to deliver large returns as part of a broader financial blessing.

However, state regulators allege that the entire setup was fundamentally deceptive. The token itself, they claim, had no functionality, no credible technology behind it, and no liquidity. An audit found that INDXcoin’s code was “unsafe, insecure, and riddled with serious technical problems.” In essence, investors had bought into a token that they could neither use, sell, nor transfer.

When the platform began to fail and investors complained about being unable to withdraw their funds, the couple insisted that delays were spiritual tests or attacks from the enemy. In one particularly controversial video, Eli Regalado defended their actions by stating that either he had misheard God or that “God is not done with this project.

In response to the allegations, a Colorado judge ordered the freezing of the couple’s assets and issued an injunction to prevent further promotion or sale of INDXcoin or any related ventures. The court has also required the couple to preserve all documents and financial records associated with the scheme. While the charges are currently civil, investigators have indicated that criminal proceedings could follow, depending on the evidence that emerges.