Divine Deception: Pastor Couple Steals $3 Million Through Religious Cryptocurrency Scam
A Denver pastor couple has been convicted of fraud after siphoning $3 million from their congregation through a worthless cryptocurrency token. Eli and Kaitlyn Regalado claimed divine inspiration for their scheme while spending investor funds on luxury items.
Religious Leaders Found Guilty in $3 Million Cryptocurrency Fraud
In a disturbing case that highlights the growing intersection of religion and cryptocurrency, a pastor couple from Denver, Colorado has been found guilty of defrauding their congregation out of $3 million through a religious-themed cryptocurrency token. Eli and Kaitlyn Regalado created a token specifically for their church members, claiming divine inspiration while using the funds for personal luxury purchases.
The court determined that the Regalados violated state securities laws and ordered them to repay $3.39 million to their victims. This case represents yet another cautionary tale in the cryptocurrency space where trust was exploited for personal gain.
A "God-Inspired" Cryptocurrency Scheme
According to court records, the Regalados established a cryptocurrency called INDXcoin, which they marketed exclusively to their religious community. They claimed that God had personally instructed them to create, sell, and "sow" this token among their followers, providing a divine guarantee of its value and future success.
The couple went to extraordinary lengths to maintain the religious façade around their cryptocurrency project. They formed what they called a "prophetic team" that gathered up to five times weekly to receive supposed divine updates about the token and its exchange platform, Kingdom Wealth.
Through this religious framing, the pastors convinced at least 509 investors to purchase INDXcoin and an additional 87 people to invest in another token called Sumcoin.
Worthless Tokens and Luxury Purchases
Investigators discovered that despite the spiritual promises, INDXcoin had no actual market value. The token couldn't be traded on recognized exchanges, making it essentially worthless to investors who had no way to liquidate their holdings.
The court found that the Regalados misled investors by claiming their token was safer than other cryptocurrencies and would generate substantial profits—promises that had no foundation in reality.
Following the money revealed the true nature of the scheme: The couple diverted at least $1.3 million of investor funds to finance their lavish lifestyle, including:
- Designer handbags and jewelry
- Luxury vacations
- New vehicles
- Extensive home renovations
This pattern of spending stands in stark contrast to the religious messaging they used to solicit investments from their trusting congregation.
Legal Consequences Mount
The civil judgment requiring the Regalados to repay $3.39 million marks just the beginning of their legal troubles. The couple now faces serious criminal charges including racketeering, fraud, and theft. Though currently released on bail, they await a criminal trial that could result in significant prison sentences.
"This case demonstrates how easily religious authority can be weaponized in the cryptocurrency space," noted one legal expert familiar with the case. "The combination of technical complexity and spiritual trust created the perfect environment for exploitation."
A Pattern of Crypto-Religious Scams
Unfortunately, this is not an isolated incident. Religious communities have increasingly become targets for cryptocurrency scams, as the trust-based nature of religious organizations can be exploited by unscrupulous leaders with technological know-how.
Regulatory authorities are now paying closer attention to cryptocurrency projects that specifically target religious communities, recognizing the unique vulnerabilities that can exist when spiritual authority and financial advice become intertwined.
Protecting Yourself from Religious Crypto Scams
For those in religious communities considering cryptocurrency investments, experts recommend several precautions:
- Separate spiritual guidance from investment advice - Be wary when religious leaders suddenly begin promoting financial products
- Verify exchange listings - Legitimate cryptocurrencies can be traded on established exchanges
- Research independently - Don't rely solely on information provided by those selling the token
- Check for regulatory compliance - Most legitimate token sales follow securities regulations
As the Regalados await their criminal trial, their case serves as a sobering reminder that in the world of cryptocurrency, divine inspiration is no substitute for due diligence.