July 28, 2025
5 min read
Katie Hawkinson
Eligio and Kaitlyn Regalado face 40-count indictment for allegedly defrauding investors of .4M in INDXcoin cryptocurrency.
Eligio “Eli” Regalado and his wife Kaitlyn Regalado, a Denver-based pastor couple, have been indicted on 40 counts including theft, securities fraud, and racketeering related to their cryptocurrency, INDXcoin.
According to the Denver District Attorney’s Office, the Regalados solicited approximately $3.4 million from around 300 investors who believed their funds would support the development of INDXcoin and the Kingdom Wealth Exchange, a platform intended for trading the coin. Prosecutors allege only a small portion of the money was invested in the business, while at least $1.3 million was diverted for personal expenses.
These personal expenditures reportedly included a home renovation, which the couple claimed was directed by “the Lord,” as well as airline tickets, motel stays, and luxury retail purchases. Authorities state that INDXcoin holds "zero value," resulting in all investors losing their money.
The Regalados maintain that INDXcoin is a "utility coin" designed to provide access to online faith-based communities and not a security, thus arguing it did not require licensing or registration. They deny any intent to defraud and assert their actions were motivated by a religious mission and sincere belief in the project’s potential.
The couple was arrested earlier in July 2025 but released on a $100,000 property bond with conditions including intensive pretrial supervision and surrendering travel documents. Their next court hearing is scheduled for September 11, 2025.
Eli Regalado stated that the idea for INDXcoin came to him in October 2021 through divine inspiration, telling followers that God instructed him and his wife to start the cryptocurrency. They encouraged investors to have faith that their investment would bring "abundance" and "blessings."
In January 2024, Colorado Securities Commissioner Tung Chan filed civil charges against the couple for violating anti-fraud, licensing, and registration provisions of the Colorado Securities Act. A preliminary injunction and asset freeze were granted shortly after.
The Colorado Department of Regulatory Agencies noted that Regalado targeted Christian communities, claiming God promised wealth to investors. Chan’s office is seeking a permanent injunction, asset freeze, and $3.4 million in restitution.
The Regalados have posted videos denying the allegations and await a ruling following a bench trial held in May 2025.
Source: The Independent