A Colorado man known as the “Crypto Pastor” has been charged with racketeering, theft, and securities fraud after allegedly diverting more than $1.3 million from investors. Eli Regalado and his wife, Kaitlyn, ran an online church called Victorious Grace Church, where they targeted their fellow congregants and members of the Christian community, urging them to invest in their cryptocurrency called INDXcoin.

Between January 2022 and July 2023, the Regalados raised approximately $3.4 million from roughly 300 investors. They promised that God had inspired their crypto project and assured supporters they would see “exorbitant” financial returns. Many were persuaded by videos in which Eli Regalado insisted that they were following divine instructions to create this wealth-building opportunity.

However, authorities allege that the majority of those funds never went into any legitimate investment. Instead, the couple is accused of using more than $1.3 million of the money for personal expenses, including luxury vacations, designer goods, dental work, tax payments, and the costly renovation of their home, which Eli claimed was ordered by God. Reports also reveal that only a small fraction, if any, of the raised money was used for the cryptocurrency operation; INDXcoin itself was found to be essentially worthless, resulting in total losses for all investors.

Regulators and investigators from the Colorado Securities Commission and the Denver District Attorney’s Office have described the scheme as an exploitation of both faith and new technology to commit old-fashioned fraud. Blockchain analytics experts who reviewed the evidence emphasized that the operation had no technical credibility and appeared designed to deceive rather than deliver any viable digital asset.

In September, a Denver judge in a civil case ruled that the Regalados had committed securities fraud, entering a $3.3 million judgment against them and other associated defendants. Eli Regalado is currently free on bond and awaits criminal arraignment. The case highlights not only the dangers of fraudulent cryptocurrency ventures but also the way personal trust and religious influence can be weaponized to victimize communities.