Crypto Scam Hits Close to Home: Online Pastor and Wife Indicted for Defrauding Followers

No one seems truly safe from crypto fraud, not even people in close-knit religious communities. A striking example of this unfolded in Denver, Colorado, where an online pastor and his wife have been indicted over a crypto scam. The couple is accused of conning members of their faith community out of more than $3 million.

Faith-Based Crypto Scam: Millions Raised for a Worthless Coin

Over the course of early 2022 through mid-2023, Eli and Kaitlyn Regalado introduced their own digital token called INDXcoin. The couple promoted it through their platform, Kingdom Wealth Exchange, targeting members of their religious circle. They described the coin as a secure and promising investment opportunity, using their spiritual influence to gain people’s confidence.

According to findings from the Denver District Attorney’s Office, the couple raised roughly $3.4 million during that period. Prosecutors stated that instead of directing the funds to the business, they used a large part of the money for personal gain. At least $1.3 million reportedly went towards daily expenses and luxury spending, including home renovations. They even stated that their decision to renovate came from spiritual guidance.

Investigators say around 300 people put their money into the project. These investors were led to believe that INDXcoin had solid financial support and would provide returns. In truth, the coin held no actual market value and was not backed by any tangible asset or tied to leading crypto assets.

Eli and Kaitlyn Regalado deceived prospective and current investors, and did not disclose to them: that Defendants lacked liquidity to support the amount of INDXcoin then outstanding and that INDXcoin was not “pegged” to a certain value or the average of the top-100 cryptocurrencies in the world, but instead was backed by essentially no assets and had no real value.

District Court of Denver, Colorado.

Legal Authorities Push for Justice in INDXcoin Case

Denver’s District Attorney, John Walsh, described the indictment as a step forward in bringing justice to those affected. He credited his legal team and investigators from the Colorado Division of Securities and the Colorado Attorney General’s Office for moving the case forward.

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. I want to thank the prosecutors and investigators in my office, and, particularly, the investigators with the Colorado Division of Securities and the Colorado Attorney General’s Office, whose outstanding work on the case resulted in this indictment

Denver District Attorney John Walsh

Earlier this year, Eli and Kaitlyn Regalado were first charged for their involvement in the creation and promotion of INDXcoin. Now, the couple faces a fresh indictment tied to the same scheme. 

At the time of the earlier charges, Colorado Securities Commissioner Tung Chan said Eli Regalado used his church position to convince followers to invest in a cryptocurrency that had no real backing.

Similar Cryptocurrency Scams From Religious Leaders and Influencers

This isn’t the first time a case like this has come to light. In early 2025, Francier Obando Pinillo, a former pastor from Washington state, was also indicted. Pinillo, like the Regalados, is accused of using his role in the church to promote a false crypto plan. 

He claimed his venture, called Solano Fi, was inspired by a dream and advertised as completely secure. The project reportedly brought in millions between late 2021 and late 2023 before the fraud was uncovered.

In a separate incident, a Russian influencer known online as “Bitmama” was jailed for seven years in a prison colony. Her case, which had no ties to religion, revolved around a crypto scheme that drained over $21 million from investors.