A Denver judge has ordered online pastor Eligio “Eli” Regalado and his wife, Kaitlyn, who sold some $3.2 million in worthless cryptocurrency to their Christian followers, to repay nearly $3.4 million in restitution.
A press release from the Colorado Department of Regulatory Agencies said Denver District Court Judge Heidi L. Kutcher made the order last Friday after ruling in a civil lawsuit that the couple and INDXcoin LLC committed securities fraud in violation of the Colorado Securities Act. They are still facing 40 counts of fraud in a separate criminal case filed in July.
“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,” Colorado Securities Commissioner Tung Chan said in response to Kutcher’s ruling.
“The Colorado Securities Division works hard to prosecute securities fraud throughout the state. This case of a local pastor scamming Coloradans right here in our cities and towns is the kind of case that shows why we need state regulators on our home front who will fight for small investors, the regular people who are just trying to pay bills, save for retirement, put food on the table,” she added.
“The cryptocurrency market has expanded to over $4 trillion and with it come scammers. When crypto frauds are hitting home, that’s where we are. 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.”
Friday’s ruling follows a three-day bench trial held May 5-8.
Chan filed charges in January 2024 alleging that the couple, along with INDXcoin, LLC, Kingdom Wealth Exchange LLC and other parties connected to sales of the cryptocurrency, violated the anti-fraud, licensing and registration provisions of the Colorado Securities Act. The complaint said investigators from the Colorado Division of Securities found that from June 2022 to April 2023, INDXcoin raised nearly $3.2 million from more than 300 individuals who were recruited as investors from Christian communities in Denver.
“It was last October that the Lord brought this cryptocurrency to me. He said, ‘Take this to my people for a wealth transfer.’ It has been confirmed a hundred times since,” Regalado reportedly told his followers online on Aug. 22, 2022, according to the lawsuit cited by The Denver Post.
“It is coming, people,” he said. “Part of the making way for His people is to really train them up and teach them how finances work in the Kingdom because many of you very soon are going to have more money than you’ve ever had in your life by participating in this crypto.”
On Nov. 1 that year, however, INDXcoin and Kingdom Wealth Exchange were shut down. Regalado insisted to investors that God had everything under control.
“Stay where you’re at. Stay in INDXcoins. Stay with where I’m telling you to go. I’m going to make a way,” the Lord said to crypto investors, according to Regalado. “Just take that word as gospel truth and execute on that word and do not worry about how the money’s going to happen. I really believe you’re going to see a miracle in very short order.”
While they were urging investors to have faith in their worthless cryptocurrency, Chan alleged that they splurged at least $1.3 million on a Range Rover, jewelry, luxury handbags, cosmetic dentistry, boat rentals, snowmobile adventures, home renovations and an au pair.
Contact: leonardo.blair@christianpost.com Follow Leonardo Blair on Twitter: @leoblair Follow Leonardo Blair on Facebook: LeoBlairChristianPost