"God or Gains? Pastor's 'Divine' Crypto Scheme Leaves 600 Faithful in Debt"

A Denver-based pastor and his wife have been ordered to repay $3.39 million in a cryptocurrency fraud case that targeted over 600 members of their online church, Victorious Grace Church. The Denver District Court found Eli and Kaitlyn Regalado guilty of selling worthless tokens—INDXcoin and Sumcoin—under the guise of a spiritually guided investment venture. The court ruled that the couple violated the Colorado Securities Act by misleading investors with religious claims and false promises of financial returns.

The Regalados marketed INDXcoin to investors by claiming that God had instructed them to create and distribute the token. They also created a “Prophetic Team” that advised them through prayer and divine direction, reinforcing the religious framing of the scheme. According to court documents, the Regalados assured investors that INDXcoin was safer than other cryptocurrencies and would yield profits, despite the token being essentially worthless and having no liquidity or market presence. In fact, a cybersecurity audit gave INDXcoin a score of 0 out of 10, with investigators later confirming that only $30,000 in funds backed the token, far below the claimed market value of $300 million.

The couple used the $3.4 million raised from over 500 investors to fund an extravagant lifestyle, including luxury cars, jewelry, cosmetic dentistry, and home renovations. Over $1.3 million was spent on personal items and church-related expenses, with no clear parameters for how the funds were allocated. The Regalados also established the Kingdom Wealth Exchange, a cryptocurrency platform designed to host INDXcoin, which collapsed after just one day of operation.

In addition to the civil judgment, the couple faces 40 felony counts, including securities fraud, theft, and racketeering. A grand jury indicted them in July 2025, and both are currently out on bond while awaiting trial. If convicted, they could face prison time. The court also imposed a 20-year ban on the couple from participating in securities offerings within the state.

The case highlights a growing trend of faith-based crypto fraud, where religious leaders exploit the trust of their congregations for personal financial gain. Colorado state officials have noted an increasing number of such schemes, with losses exceeding $81 million reported last year alone. The Regalados' case has drawn particular attention due to the emotional and spiritual manipulation involved, as well as the lack of transparency in their financial operations.

This ruling underscores the need for heightened awareness and regulatory scrutiny in the cryptocurrency space, especially when religious leaders are involved in financial ventures. As the court emphasized, investors must be cautious of promises that seem too good to be true, particularly when they are framed in religious or spiritual language.