A Colorado pastor awaits judgment in civil court, where state regulators allege he deceived Christian investors with promises of “divine wealth” through a “worthless cryptocurrency.” scam.
Eli Regalado and his wife, Kaitlyn, founders of INDXcoin and the online-only Victorious Grace Church, are accused of securities fraud for promoting a religious-themed cryptocurrency that state regulators said was “essentially worthless.”
Outlined in court documents from a bench trial last month, state officials allege the Regalados misled hundreds of investors, pocketed funds for personal use, and recruited unlicensed sellers to help promote the coin nationwide.
Colorado Securities Commissioner Tung Chan is seeking a permanent injunction, a freeze on the Regalados’ assets, and $3.4 million in restitution — the total amount allegedly raised from more than 300 people between June 2022 and April 2023.
According to trial evidence and forensic accounting, the couple used investor funds to pay for luxury expenses, including:
- A Range Rover, referenced in records as “Kait car”
- More than $93,000 in travel and entertainment
- Nearly $40,000 in meals
- Jewelry, clothing, and personal credit card payments
- $500,000 to the IRS
- A home remodel, which Eli Regalado claims: “the Lord told us to do.”
Of the $3.4 million raised, more than $1.3 million was allegedly spent on non-business-related items, according to findings from state forensic accountant Christina Mallard, who testified on behalf of the Colorado Division of Securities.
“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,” Colorado Securities Commissioner Tung Chan‘s office said last January. “New coins and new exchanges are easy to create with open-source code. We want to remind consumers to be very skeptical.”
The couple argued in court filings that they believed INDXcoin was a “utility coin,” not a security, and therefore did not require licensing or registration. They said they relied on legal advice and disclosures in their whitepaper, and claimed the exchange failed due to technical issues caused by a third-party developer rather than fraud, according to court documents.
“The Regalados did not intend to defraud investors,” the couple wrote in a statement to the court, arguing that they “acted based on their religious mission and sincere belief in the project’s potential,” according to their proposed findings of fact filed in June 2025.
The couple asked the court to dismiss fraud allegations and reduce any financial penalties. They argued that the requested $3.39 million in restitution was excessive, noting that a portion of the funds was used for legitimate operational expenses including software development and blockchain audits.
The May trial is the latest development in a legal battle with the state that has unfolded over more than a year.
Last January, Denver District Court Judge David Goldberg granted a preliminary injunction and froze the couple’s assets, describing the case as one of “egregious greed,” according to court filings. Regalado did not appear at the hearing, instead attending the Glory Shift Conference in Zambia, as documented in Facebook posts from Gifted Faith Ministry.
The following February, the state expanded its complaint to include a dozen additional defendants who allegedly helped promote INDXcoin without proper licensing. Those named include Regalado’s father, Eligio Regalado Sr.; his brother-in-law, Daniel Applegate; and Louisiana televangelist Jesse Duplantis. Several received commissions ranging from $15,000 to $27,000, according to an amended complaint.
A spokesperson for the Colorado Division of Securities declined to comment, citing the pending court decision.
While the current case remains civil, Eli Regalado has acknowledged in public interviews that he previously served time in prison for car theft. No criminal charges have been filed in the INDXcoin matter as of publication.
The Denver Gazette reached out to Eli Regalado for comment, but did not receive a response at the time of publication.
The court has not yet issued a judgment, but under Colorado trial procedure, a ruling is typically issued within weeks of final submissions.
