A grand jury in Denver has indicted a pastor and his wife on 40 counts of theft, fraud, and deception, alleging their involvement in a multi-million dollar cryptocurrency scam that predominantly targeted churches, as announced by the Denver District Attorney in a press release. The couple, Eli and Kaitlyn Regalado, who host their church, Victorious Grace Church, at their home, allegedly solicited nearly $3.4 million from investors interested in purchasing their INDXcoin cryptocurrency through the Kingdom Wealth Exchange between 2022 and July 2023. The Regalados allegedly targeted Christians from their church and other churches, promising substantial returns on their investment, but ultimately, the INDXcoin had no value, and over 300 investors lost their money. It is alleged that the couple used $1.3 million of the proceeds from token sales for personal expenses, including a home renovation.
The whitepaper for INDXcoin claimed it was designed to grow in tandem with the cryptocurrency market by benchmarking the top 100 cryptocurrencies, allowing users to capitalize on growth while mitigating risk. However, the indictment claims this was deceptive. The indictment states that the Regalados deceived investors by not disclosing that they lacked liquidity to support the outstanding INDXcoin and that the coin was not pegged to a certain value or the average of the top 100 cryptocurrencies, but instead had no real value and was backed by essentially no assets.
Colorado Securities Commissioner Tung Chan initially filed charges against the pair last year. In a video message, the pastor appeared to acknowledge the charges, stating that the venture was something he believed God had instructed him to undertake, but it turned out to be a scam.