Colorado Pastor and Wife Ordered to Repay $3.39M in Church Crypto Fraud Case
A Denver court ordered Eli and Kaitlyn Regalado to repay millions after defrauding hundreds through INDXcoin, as similar faith-based crypto scams gain attention across the U.S.
Denver District Court Judge Heidi Kutcher ordered Pastor Eli Regalado and his wife Kaitlyn to repay $3.39 million after ruling their INDXcoin scheme defrauded over 600 investors. The court found they committed securities fraud by selling worthless tokens between June 2022 and April 2023, while diverting funds to luxury purchases. The Regalados are separately indicted on 40 criminal counts including racketeering. Their case highlights a broader pattern of faith-based crypto fraud, with recent cases including a $228.6 million CFTC judgment against Eddy Alexandre’s EminiFX Ponzi and a $5.9 million alleged fraud by Washington pastor Francier Obando Pinillo.
- INDXcoin: A cryptocurrency token promoted by Eli and Kaitlyn Regalado, deemed a security by the Colorado court and found to be worthless.
- Securities Fraud: A form of white-collar crime involving deceptive practices in the stock or investment markets, in this case through misrepresentation of a crypto asset's value and profit potential.
- EminiFX: A fraudulent investment scheme run by pastor Eddy Alexandre, marketed as a crypto investment club with promised weekly returns but exposed as a Ponzi operation.