Court Ruling Ends Civil Case
A Denver District Court judge banned Eli and Kaitlyn Regalado from private securities transactions, including cryptocurrency, for 20 years. The pair must also repay nearly $3.4 million after defrauding more than 300 people through their INDXcoin scheme. Judge Heidi L. Kutcher found them guilty of securities fraud and noted their “lack of understanding of the harm they have caused.”
Religious Community Targeted
The Regalados led an online church, Victorious Grace, before launching INDXcoin. They promised Christians financial blessings, claiming God endorsed their project. Marketing materials were directly targeted at Christian communities worldwide. Despite warnings about technical flaws, the couple described the investment as low-risk and high-profit. State investigators later revealed the coin was worthless.
Lavish Spending Exposed
At least $1.3 million went to the couple’s personal expenses, including luxury vehicles, jewelry, cosmetic dentistry, and vacations. They also funneled money into their online church account. Despite mounting evidence, Eli Regalado repeatedly told investors that a “miracle” would save their investments. Judge Kutcher noted that they misled investors, even after knowing that INDXcoin had no value.
Supporters and Detractors Speak Out
Supporters argue that the Regalados saw their project as a form of ministry. During the trial, the couple claimed people joined to strengthen their faith, not for financial gain. They insisted that “many people got saved” through INDXcoin. Critics, however, called the scheme a betrayal of trust, highlighting how the couple used religious language to mask fraud. Commissioner Tung Chan described them as “21st century false prophets” exploiting both faith and cryptocurrency.
Criminal Case Still Pending
The civil ruling ends one chapter, but the Regalados still face 40 felony charges, including theft, securities fraud, and racketeering. A friend, Nathanael Enos, who was also involved, was also banned and fined. Prosecutors say prison time remains likely. Until then, victims wait to see if the criminal justice system will deliver consequences stronger than a financial penalty.
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Colorado pastor and wife ordered to repay $3.4M to victims of their crypto scam
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