Pastor Crypto Scam Leads to $3.3M Fraud Conviction

A Colorado pastor and his wife have been found guilty in a pastor crypto scam that defrauded hundreds of investors. Eli and Kaitlyn Regalado raised $3.3 million by promoting their cryptocurrency INDXCoin through their church community. The couple misled followers with false promises of safety and spiritual purpose, leaving victims with heavy losses.

How the Scam Worked

The Regalados marketed INDXCoin through their Kingdom Wealth Exchange platform. They told their congregation that the token was safe, low-risk, and part of a faith-driven investment plan. In reality, an auditor had rated the coin 0 out of 10 for security. This crucial fact was hidden from investors.

The couple also promised that INDXCoin would be listed on their exchange. Instead, the platform collapsed after only a day. Their assurances of long-term growth and spiritual mission turned out to be empty claims.

Misuse of Investor Funds

Investigators discovered that $1.3 million of the funds went directly to the couple’s personal luxuries. Purchases included a Range Rover, designer clothing, jewelry, luxury ski trips, dental work, and a home remodel. Eli Regalado even claimed that God had instructed the renovations.

Victim Impact

The scam affected more than 300 investors, many of whom were members of local Christian communities in Denver. The Regalados persuaded victims to invest by appealing to faith and promising that their money would help widows and orphans. Instead, they misused the funds for personal benefit.

Legal Outcome

The court ruled that Eli and Kaitlyn Regalado were guilty of defrauding investors. Regulators described them as “false prophets” who exploited religion and cryptocurrency for financial gain. Authorities warned that combining faith-based trust with unregulated investments can lead to devastating losses.

Conclusion

The pastor crypto scam shows how fraudsters can exploit trust and faith in financial schemes. The Regalados exploited their influence to push a worthless token and cost hundreds of people millions. This case warns investors to verify claims, check audits, and stay cautious whenever someone uses faith as a selling point.