- Eli Regalado led a crypto fraud at Victorious Grace Church.
- He and his wife must repay $3.39 million.
- INDXcoin was deemed worthless by investigators.
Eli and Kaitlyn Regalado, leaders of the Victorious Grace Church in Denver, were ordered to repay $3.39 million after defrauding 600 members through cryptocurrency tokens.
The case highlights the legal risks of exploiting religious trust in crypto schemes, impacting investor confidence and regulatory scrutiny.
A Denver pastor has been ordered to repay $3.39 million after defrauding church members. Between January 2022 and July 2023, Eli Regalado used the church community’s trust to fund a questionable cryptocurrency project. Eli Regalado and his wife led the promotion of INDXcoin, claiming it was divinely inspired. The couple, facing fraud charges, were ordered to stop securities transactions in Colorado for 20 years.
The alleged scheme affected about 600 church members. Financially, $1.3 million was reportedly used for personal expenses including luxury purchases, indicating misuse of funds. The financial implications include the substantial $3.4 million repayment mandate. Socially, this highlights vulnerabilities within close-knit communities when introduced to new technology.
The religious approach to soliciting investments adds a unique angle to the pattern of faith-based frauds. The absence of public development or community engagement underscores its lack of credibility. Experts suggest this case may prompt tighter regulatory scrutiny over crypto ventures tied to community trust. Regulatory responses highlight the need for vigilance against unregulated financial schemes posing as legitimate investments.
The Regalados are 21st-century false prophets who leveraged the new and promising technology of cryptocurrencies to run an old-fashioned scam, victimizing their own congregants and others.” — Tung Chan, Colorado Securities Commissioner
