Divine Crypto Scheme SHOCKS Hundreds

July 31, 2025

Bitcoin coins and bills displayed closely

When a Denver pastor and his wife claimed God told them to launch a Christian cryptocurrency, nobody expected it would end with a grand jury indictment and over 300 faithful investors left penniless and betrayed.

At a Glance

Denver-based pastor Eli Regalado and his wife Kaitlyn face 40 felony charges for a $3.4 million cryptocurrency scam targeting Christian investors.
The couple allegedly used religious rhetoric and their roles as faith leaders to peddle a worthless token, INDXcoin, promising divine returns.
Authorities say at least $1.3 million was spent on personal expenses, including home renovations the couple claimed were mandated by God.
Regulators and prosecutors have launched both civil and criminal actions, seeking restitution and an asset freeze to recover investor losses.

Christian Authority Used to Sell Worthless Cryptocurrency

Prosecutors allege that Eli and Kaitlyn Regalado, founders of the online-only Victorious Grace Church, orchestrated a cryptocurrency scam that preyed on their own religious community. From January 2022 to July 2023, the couple promoted INDXcoin, a digital token they created and sold through the Kingdom Wealth Exchange platform. They claimed divine instruction as their authority, assuring investors that supporting the token was not just financially wise but spiritually mandated. This mixture of faith and finance proved powerful—over 300 investors handed over a total of $3.4 million, hoping for both earthly returns and heavenly favor.

The couple’s pitch leaned hard on their positions as spiritual leaders. They promised that God had guided the creation of INDXcoin and assured their followers that investing would lead to prosperity. These appeals to faith built trust but, as investigators would soon discover, the promise was empty. The token itself was effectively worthless, lacking any underlying value or legitimate market. According to the indictment, only a fraction of the millions raised ever made it to any business purpose. Instead, at least $1.3 million was diverted to personal luxuries, including a lavish home renovation that the Regalados, in a jaw-dropping move, claimed was itself ordained by God.

Grand Jury Indictment and the March Toward Justice

The fallout began in earnest when a Denver grand jury returned a 40-count felony indictment against the Regalados, including charges of racketeering, theft, and securities fraud. The indictment followed a string of civil fraud charges and months of investigation by the Denver District Attorney’s Office, the Colorado Division of Securities, and the Colorado Attorney General’s Office. Authorities are now seeking both criminal penalties and civil remedies, including a permanent injunction, asset freeze, and full restitution for the scammed investors.

Denver District Attorney John Walsh announced, “These charges mark a major step forward in our work to hold the Regalados accountable for their alleged crimes and to bring a measure of justice to the victims.” Colorado Securities Commissioner Tung Chan added that the case represents a clear warning to consumers about the risks of investment schemes cloaked in religious trust. Chan minced no words: “We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies.”

Ripple Effects: Faith, Trust, and a Damaged Community

The damage runs deeper than financial loss. Beyond the immediate $3.4 million lost by over 300 investors, the scandal has left scars on the faith community itself. Many of the victims were drawn in by a sense of shared belief, convinced that their investments were blessed by their spiritual leaders. Now, trust is shaken—not just in one couple, but in the broader idea that religious leaders can be relied upon for honest financial guidance. The case has reignited concern over “affinity fraud,” a tactic that targets close-knit communities, often leveraging shared faith or ethnicity to bypass skepticism. With cryptocurrency so lightly regulated, the risk of these scams is only growing.

On a broader scale, some regulatory and legal experts see a turning point. The case highlights glaring vulnerabilities in both the cryptocurrency sector and faith-based investment circles. Law enforcement is taking notice, and calls for more oversight are growing louder. There is little doubt that the fallout will ripple through both the religious and financial sectors, with greater scrutiny likely for similar ventures moving forward.

Expert and Official Reactions

Colorado Securities Commissioner Tung Chan and Denver District Attorney John Walsh have been outspoken about the need for vigilance. Chan specifically pointed to the ease with which new coins and exchanges can be created using open source code, urging consumers to approach faith-based investment opportunities with heightened skepticism. The message is clear: even trusted community leaders can exploit their positions for personal gain, and unregulated digital assets only make such exploitation easier.

Affinity fraud isn’t new, but this case stands out for its use of religious language and the relatively new medium of cryptocurrency. For many in the conservative community, it’s a sobering reminder that common sense, personal responsibility, and skepticism are more important than ever—especially when someone claims the Almighty is backing their business plan. At the end of the day, faith should be a source of strength, not a tool for financial manipulation, and government oversight should focus on protecting honest Americans, not enabling or subsidizing scams.