Denver, Colorado – A startling case has surfaced as Pastor Eli Regalado and his wife, Kaitlyn Regalado, are charged with fraud for purportedly creating a cryptocurrency targeted at Christian communities and misusing funds for a “lavish lifestyle.” The Colorado Division of Securities disclosed that the couple crafted, promoted, and sold a digital currency called “INDXcoin” to Christian community members, alongside operating the Kingdom Wealth Exchange (KWE), an online cryptocurrency exchange.
Colorado Securities Commissioner Tung Chan has filed civil fraud charges against the Regalados and affiliated companies for numerous violations of the state’s securities regulations. The investigation uncovered that between June 2022 and April 2023, INDXcoin accumulated approximately $3.2 million from over 300 individuals. The complaint alleges that Regalado preyed on Denver’s Christian communities, asserting divine assurance that investing in INDXcoin would bring wealth to believers.
Despite the Regalados lacking cryptocurrency expertise, they persistently marketed INDXcoin as a low-risk, highly profitable investment. However, a third-party auditor’s report revealed serious technical flaws, describing the INDXcoin code as unsafe and insecure. Investors incurred significant losses while the Regalados redirected funds to sustain their opulent lifestyle.
Commissioner Chan expressed astonishment at the pastor’s breach of trust, underscoring that Regalado exploited the faith of his own Christian community by peddling essentially worthless cryptocurrencies. He urged consumers to approach new coins and exchanges with skepticism, emphasizing their vulnerability to creation with open source code.
The case against the Regalados has been initiated in Denver District Court, seeking redress for investors, damages, and the imposition of a constructive trust on the defendants’ assets. The investigation is ongoing, and individuals who invested with INDXCoin or any of the Regalados’ entities are encouraged to contact the Colorado Division of Securities for further details.
