Months after a Denver grand jury indicted Pastor Eligio “Eli” and Kaitlyn Regalado on racketeering, theft, and securities fraud charges, a Denver District Court judge has ruled that the Regalados committed securities fraud and ordered the pair to pay over $3.3 million in restitution.
Judge Heidi L. Kutcher ruled that the Regalados committed securities fraud under their company INDXcoin LLC, and ordered the duo to pay over $3.3 million in restitution.
The judge’s ruling was issued on Sept. 12, following a three-day bench trial held in early May, according to a news release.
Colorado Securities Commissioner Tung Chan reportedly initiated the case against Eli and Kaitlyn on January 16, 2024, by filing civil fraud charges against the defendants.
As Premier Christian News previously reported, the Regalados founded the online-only Victorious Grace Church and INDXcoin, a religious-themed cryptocurrency. Chan said the duo used their faith-based connections to recruit investors for their “worthless” cryptocurrency while “promising exorbitant returns on the investments.”
“From June 2022 to April 2023, INDXcoin raised nearly $3.4 million from more than 300 individuals,” the original complaint states.
According to Chan, the Regalados had no prior experience in cryptocurrency.
“Despite that report, which wasn’t disclosed to investors, the Regalados promoted the INDXcoin as a low-risk, high-profit investment,” prosecutors noted. “They promised the coins would be traded on the Kingdom Wealth Exchange (KWE), an online cryptocurrency exchange that they created, which collapsed after a day of trading.”
Investigators got involved following Eli’s social media activity. In a viral YouTube video, he admitted to using investor funds to pay outstanding taxes and remodel their home because “the Lord told us to do.” They also used investor funding that contributed to a lavish lifestyle filled with jewelry, luxury trips, designer clothes, a Range Rover, and dental work, Eli said.
On July 22, 2025, a Denver grand jury criminally indicted Eli and Kaitlyn Regalado on 40 counts regarding the alleged multi-million-dollar cryptocurrency scam.
"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,” said Commissioner Chan.
Chan added: “The Court's holding is a win for Colorado investors, for justice and fair play, and for every legitimate cryptocurrency project out there. We are proud to be part of this work.”