Michaela
Denver pastor Eligio “Eli” Regalado Jr. and his wife, Kaitlyn, have been ordered to repay $3.39 million after a Denver court found their INDXcoin venture defrauded hundreds of church members and Christian investors, violating Colorado securities law.
Key points:
- A Denver court ordered Pastor Eli Regalado and his wife Kaitlyn to repay $3.39M after ruling their INDXcoin crypto scheme defrauded church members and Christian investors.
- The couple allegedly misled over 300 people between 2022 and 2023, hiding an auditor’s “0/10” security rating while promoting INDXcoin as safe and profitable.
- Court filings revealed they used investor funds to finance luxury spending, while their exchange, the Kingdom Wealth Exchange, collapsed after just one day.
In a press release, the Denver District Court confirmed that Judge Heidi Kutcher issued the ruling after a three-day bench trial in May 2025. The court entered a joint and several judgment of $3,339,422.15 against Regalado, his wife Kaitlyn, and other associated defendants.
The case originated in January 2024 when Colorado Securities Commissioner Tung Chan filed civil fraud charges against the defendants. In the complaint, Chan alleged that the Denver pastor and his wife created, promoted, and sold a worthless digital token known as INDXcoin.
Between June 2022 and April 2023, INDXcoin raised nearly $3.4 million from more than 300 investors. According to Commissioner Chan’s complaint, the Regalados allegedly targeted Denver’s Christian communities, using false claims and key omissions to persuade individuals to invest in the scheme.
It was further revealed that the Denver pastor and his wife had no prior experience in cryptocurrency, a fact spotlighted by an auditor’s assessment that gave their token a security code score of zero out of ten.
The Regalados did not disclose this report to investors and instead marketed INDXcoin as a low-risk, high-return opportunity. They also promoted trading on their own platform, the Kingdom Wealth Exchange, which collapsed just one day after launching.
Furthermore, court documents state that the Regalados had no other source of income during the period in question and allegedly diverted investor funds to sustain a lavish lifestyle. The couple is accused of spending the money on jewelry, designer clothing, dental procedures, luxury ski and yachting vacations, and the purchase of a Range Rover.
In April 2025, the Denver District Court issued a summary judgment siding with Commissioner Tung Chan, ruling that the investments sold by the defendants qualified as securities under the Colorado Securities Act. The court’s latest decision, finding that the Denver pastor and his wife fraudulently marketed and sold those investments, resolves all remaining issues in the civil case brought forward by the commissioner.
“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,” Commissioner Chan stated.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
