Pastor Eli Regalado and his wife Kaitlyn from Denver have been indicted in a multi-million dollar cryptocurrency fraud scheme, raising over $3 million from believers.
Charges Against the Regalados
Pastor Eli Regalado and his wife have been indicted on 40 counts related to a cryptocurrency fraud scheme described by Denver District Attorney John Walsh. Between January 2022 and July 2023, the Regalados allegedly solicited nearly $3.4 million by encouraging individuals in their religious network to invest in INDXcoin, a token they created and sold through the Kingdom Wealth Exchange platform.
Financial Misappropriations and Consequences
According to the indictment, they spent at least $1.3 million on personal expenditures, including home renovations that they allegedly claimed were directed by 'the Lord'. Only a small portion of the funds raised was reportedly allocated to the business. Authorities state that at least 300 individuals invested in the token, which 'maintained zero value', resulting in total losses for all investors.
Cryptocurrency Scams in the Modern World
Cryptocurrency fraud schemes are increasingly prevalent among retail investors. In May, an FBI-led investigation led to the arrest of a man from New Zealand who allegedly stole $265 million worth of digital assets. Such incidents highlight the growing need for investor protection against fraudulent schemes.
The charges against the Regalados illustrate significant issues surrounding fraud in the cryptocurrency space and serve as a reminder of the importance of caution for investors.
