Unveiling the Alleged Cryptocurrency Scam
In a shocking turn of events in Denver, Colorado, Pastor Eligio Regalado and his wife, Kaitlyn Regalado, have been indicted on multiple charges related to an alleged cryptocurrency scam. The couple, associated with Victorious Grace Church, is accused of defrauding investors out of nearly $3.4 million through a digital coin called INDXcoin. Prosecutors allege that between January 2022 and July 2023, the Regalados targeted faith-based communities, particularly churches, using their religious influence to solicit funds.
The indictment, filed in Denver District Court, lists 40 felony counts against the couple, including theft, securities fraud, and racketeering. According to court documents, the cryptocurrency they promoted was 'practically worthless,' leaving hundreds of investors with significant losses. The Regalados made their first court appearance on July 24, standing before a district judge to face these serious allegations.
Misuse of Investor Funds and Personal Gain
Prosecutors have detailed how the Regalados allegedly misused the funds they collected from investors. Over $1 million was reportedly spent on personal luxuries such as home renovations, plane tickets, and au pair services. This lavish spending has drawn sharp criticism, as many of the investors were members of the couple's own religious community who trusted their spiritual leaders.
In a statement previously made in a video following earlier civil actions in 2024, Eligio Regalado claimed that he acted under divine guidance, even suggesting that he may have 'misheard God' regarding the cryptocurrency venture. This defense has resurfaced in discussions around the current criminal charges, though it remains to be seen how it will hold up in court. The personal enrichment at the expense of faithful followers has intensified public outrage over the case.
Legal Proceedings and Community Impact
As the legal process unfolds, the Regalados are currently out on bond following their initial court hearing. The case has sent ripples through Denver's faith-based communities, with many feeling betrayed by leaders they once trusted. The scale of the alleged fraud—targeting vulnerable investors through religious connections—has prompted calls for stricter oversight of cryptocurrency ventures promoted within community networks.
This indictment builds on earlier civil actions taken against the couple in 2024, where similar accusations of fraud were raised. Now, with criminal charges in play, the stakes are higher, and the outcome of this case could set a precedent for how faith-based financial schemes are prosecuted. The Denver community watches closely as justice seeks to address the harm done to hundreds of investors who believed in a promise that turned out to be empty.