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The Denver District Court has ruled against Eli and Kaitlyn Regalado, finding that their cryptocurrency project INDXcoin was an unregistered securities scheme that defrauded hundreds of investors.
Whoa 😳—a Denver pastor and his wife just got slammed in court for running a $3.4 million crypto scam. They claimed God told them to launch INDXcoin, a token tied to their church, and convinced hundreds of believers to invest. But turns out, the coin was basically worthless and… pic.twitter.com/kvAEKbhP8X
— Seven Crypto 🐋 (@SevenWinse) September 17, 2025
On 12 September 2025, Judge Heidi L. Kutcher issued a civil judgment of $3,339,422.15 against the couple, while also banning them from participating in private securities transactions in Colorado for the next 20 years. The Colorado Division of Securities confirmed the ruling on 16 September 2025.
The Fraudulent Scheme
Between June 2022 and April 2023, the Regalados raised nearly $3.4 million from more than 300 investors, primarily members of their local Christian community, by promising high returns with little risk. Investors received INDXcoin tokens, which quickly proved worthless.
The couple operated a custom-built exchange called Kingdom Wealth Exchange, but it collapsed in 2023 due to lack of liquidity and user adoption. A commissioned audit from blockchain security firm Hacken gave the project a 0/10 security score, flagging severe vulnerabilities, warnings never shared with investors.
Court documents revealed that much of the money went toward personal luxuries, including jewelry, ski trips, designer clothing, dental work, yacht vacations, and even a Range Rover. Viral footage from early 2024 showed Eli Regalado admitting to pocketing investor money, citing taxes and even a home renovation he claimed “the God told us to do.”
Civil vs. Criminal Proceedings
While the civil case is now settled, the criminal case is ongoing. On 22 July 2025, a Denver grand jury indicted the couple on 40 counts, including theft, securities fraud, and racketeering. These charges could lead to prison time if convicted.
Regulators stress that this ruling sends a clear warning to the crypto industry: exploiting religion or crypto hype to sell non-compliant securities will result in harsh penalties, bans, and forced restitution.
The case highlights the importance of transparency, third-party audits, and credible governance, elements missing from INDXcoin’s marketing pitch. A trustworthy crypto exchange and wallet are always encouraged for users for a safe trade.
