Denver Pastor and Wife Indicted in $3 Million Faith-Based Crypto Scam

A Denver-based online pastor and his wife have been indicted on 40 criminal counts tied to a cryptocurrency fraud scheme that defrauded hundreds of faith-driven investors out of more than $3 million.

Key Takeaways:

• A Denver pastor and his wife were indicted for defrauding over 300 investors through INDXcoin.
• Authorities say the couple spent $1.3 million of investor funds on personal expenses.
• Crypto investors lost over $2.2 billion to hacks, scams, and breaches in the first half of 2025.

Eli Regalado, a self-described online pastor, and his wife, Kaitlyn, are accused of orchestrating a scheme centered on INDXcoin, a token they created and sold between January 2022 and July 2023.

Prosecutors say the couple targeted members of their Christian network, encouraging them to invest in INDXcoin through the Kingdom Wealth Exchange—despite the token allegedly having “zero value.”

Denver District Attorney John Walsh described the case as a “multi-million-dollar cryptocurrency scam.”

“These charges mark a major step forward in our work to hold the Regalados accountable for their alleged crimes and to bring a measure of justice to the victims,” Walsh said.

Authorities estimate that more than 300 people invested in the scheme, resulting in collective losses exceeding $3.3 million.

According to the indictment, the Regalados diverted at least $1.3 million of investor funds for personal use, including home renovations.

Eli Regalado reportedly told followers that “the Lord” had directed the couple to upgrade their home. Only a small fraction of the money was ever used to develop the INDXcoin project, investigators found.

The couple had previously been charged in January, when Colorado Securities Commissioner Tung Chan accused them of exploiting religious trust.

“We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community,” Chan said at the time.

“He peddled outlandish promises of wealth… when he sold them essentially worthless cryptocurrencies.”

An online pastor was charged in CO for a $1.3 million crypto scam. He's released a 9-minute-long video explaining that the Lord told him to sell a cryptocurrency with no clear exit", and spend some of the proceeds on "a home remodel the Lord told us to do".

Here's a supercut. pic.twitter.com/scKpF8nyrT

The case adds to a growing list of crypto-related frauds involving retail investors.

In May, the FBI arrested a New Zealand man accused of stealing $265 million in digital assets, allegedly spending the funds on luxury cars and high-end goods.

Authorities in Colorado say the Regalado case serves as a warning about the risks of mixing personal belief with financial promises.

Investigations were conducted by the Colorado Division of Securities and the Colorado Attorney General’s Office.

Crypto investors lost over $2.2 billion to hacks, scams, and breaches in the first half of 2025, driven largely by wallet compromises and phishing attacks, according to CertiK’s latest security report.

Wallet breaches alone caused $1.7 billion in losses across just 34 incidents, while phishing scams accounted for over $410 million across 132 attacks.

Two major incidents, including Bybit’s $1.5 billion hack in February and Cetus Protocol’s $225 million exploit in May, skewed the year’s losses upward, together accounting for nearly $1.78 billion.

Without these, losses align more closely with previous years at around $690 million.

Ethereum remained the primary target, suffering over $1.6 billion in losses across 175 events.

The report also pointed to rising sophistication of phishing schemes and ongoing risks from social engineering, urging crypto users to verify links, avoid suspicious sites, and use hardware wallets.

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