A Denver grand jury has indicted a pastor and his wife on 40 felony charges related to an alleged multimillion-dollar cryptocurrency scheme.
Eligio “Eli” and Kaitlyn Regalado face charges including racketeering, theft, and securities fraud. According to the Denver District Attorney’s Office, the scheme took place between January 2022 and July 2023.
The Regalados, founders of the online-only Victorious Grace Church and INDXcoin, a religious-themed cryptocurrency, allegedly used their faith-based connections to recruit investors while “promising exorbitant returns on the investments,” the Denver District Attorney’s Office stated.
Court records reveal that the Regalados solicited over $3 million from investors looking to purchase INDXcoin. However, according to the indictment, only a small portion of the proceeds went towards their business venture.
The Regalados reportedly spent at least $1.3 million on personal expenses, including a home renovation that the defendants claimed “the Lord” instructed them to carry out. All the while, INDXcoin held no value, and all investors lost the entirety of their money.
“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,” said Denver District Attorney John Walsh.
According to the Denver Gazette, the defendants are also awaiting judgement from a civil court bench trial held in May. The Colorado Securities Commissioner, Tung Chan, is seeking a permanent injunction, a freeze on the couple’s assets, and $3.4 million in restitution.
“We allege that Mr Regalado took advantage of the trust and faith of his own Christian community, and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” Commissioner Chan said in January. “New coins and new exchanges are easy to create with open-source code. We want to remind consumers to be very sceptical.”