Online Pastor Indicted in $3.4M Crypto Scheme – MinistryWatch

A criminal indictment has been added to the legal troubles facing Eligio Regalado, the Denver-based pastor of online-only Victorious Grace Church.

Eli and Kaitlyn Regalado / Photos via Denver District Attorney’s Office

In January, Regalado and his wife Kaitlyn were hit with a civil suit by Colorado Securities Commissioner Tung Chan for allegedly scamming their own congregation into investing in a worthless cryptocurrency token.

Now, the Regalados have been indicted on 40 criminal counts, including two racketeering charges, related to the scheme, in which the couple allegedly squandered investors’ funds on personal items such as cosmetics, airline tickets and home renovations. They reportedly did this while telling their church that God had told them to promote the token and that they would tithe a portion of the funds to support widows and orphans.

“According to the indictment, between January 2022 and July 2023, the Regalados solicited nearly $3.4 million from investors who were looking to buy INDXcoin, a cryptocurrency created and marketed by the Regalados,” Denver District Attorney John Walsh announced in a July 22 press release. “The Regalados allegedly used their faith-based connections to recruit investors while promising exorbitant returns on the investments. The indictment alleges that, in reality, only a small amount of the proceeds went to the business venture and that the Regalados spent at least $1.3 million on personal expenditures, including a home renovation that they have allegedly claimed ‘the Lord’ told them to do. As alleged, INDXcoin maintained zero value and all of the investors lost all of their money.”

MSN reported that Walsh accused the Regalados of breach of trust for manipulating the religious faith of many of their more than 300 alleged victims.

“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,” the press release said.

According to MSN, court documents claim the Regalados used multiple entities to pull off their scheme. These included INDXCOIN INC., INDXCOIN LLC, Grace Led Marketers, and Kingdom Wealth Exchange companies, in addition to Victorious Grace Church. Only Grace Led Marketers and the church were legally registered with the state.

The Regalados’ case bears similarities to another cryptocurrency scam, in which a Washington pastor, Obando Pinillo, is facing federal charges for allegedly swindling his own congregation out of investment funds he then used to line his own pockets.

EDITOR’S NOTE:  Why does MinistryWatch report on financial fraud in the church?  We report on them because one in three churches will be victimized, according to the Center for the Study of Global Christianity. We also report on them because these crimes have real victims and cost taxpayers and other stakeholders billions of dollars every year.  Even small crimes in small churches have huge consequences.  We also report on them to remind our readers that they do not have to be victims. There are steps you can take to prevent financial waste, fraud, and abuse in your church or ministry.  To find out more, click here.

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