Online Pastors Defrauded Followers Out of $3.4M

Just when you thought exploiting faith for profit couldn’t get any lower, a Colorado couple stands accused of fleecing their own Christian community out of millions with a bogus cryptocurrency they claimed was blessed by God himself.

At a Glance

Eli and Kaitlyn Regalado, Denver-based online pastors, indicted on 40 felony counts for a $3.4 million cryptocurrency scam
The couple used their spiritual authority to promote “divinely inspired” INDXcoin to over 300 faith-based investors
Funds were allegedly funneled into personal expenses, including a lavish home renovation
Regulators and prosecutors are pursuing criminal and civil charges, with investors left empty-handed

Faith, Trust, and a Worthless Coin: How the Regalados Fooled Hundreds

The playbook was all too familiar: take the good will and trust of a tight-knit religious community and twist it for personal gain. Eli and Kaitlyn Regalado, founders of the online-only Victorious Grace Church, didn’t just ask for donations—they peddled a get-rich-quick scheme wrapped in the language of faith. Their pitch: God himself had told them to launch INDXcoin, a brand-new cryptocurrency, promising “divine favor” and handsome returns to anyone willing to invest. From January 2022 through July 2023, more than 300 devout followers bought in, investing a total of $3.4 million. Yet the so-called coin was “essentially worthless” from day one, according to the Colorado authorities. For the Regalados, the only miracle was how easily they allegedly converted faith into cold, hard cash.

The Denver District Attorney’s Office and Colorado Division of Securities say the scheme was as brazen as it was simple: leverage spiritual authority to disarm skepticism and pitch a digital asset on the back of religious fervor. The couple’s own online sermons encouraged their flock to trust them—and, by extension, trust their coin. The manipulation of faith for financial gain is nothing new, but crypto turned the scam into a high-tech heist. According to prosecutors, while a fraction of the money was spent on the “business,” at least $1.3 million funded the couple’s personal lifestyle, including a luxury home renovation they claimed was “divinely mandated.” When the dust settled, every investor lost their entire stake.

Criminal Indictments Bring the Hammer Down

On July 23, 2025, a Denver grand jury indicted both Eli and Kaitlyn Regalado on 40 felony counts, including racketeering, theft, and securities fraud. This criminal case follows a civil fraud suit already underway, as officials scramble to recover assets and deliver restitution to the 300-plus victims. District Attorney John Walsh called the charges “a major step forward… to bring a measure of justice to the victims.” Colorado Securities Commissioner Tung Chan didn’t mince words, warning, “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.” The state is also seeking a permanent injunction, asset freeze, and $3.4 million in restitution—though the prospect of full recovery for the victims remains slim.

The timeline of events reads like a cautionary tale: the INDXcoin scheme launched in early 2022, drawing in millions over 18 months. By July 2023, the entire house of cards collapsed, with investors holding nothing but empty promises. Civil charges were filed in January 2025, followed by a bench trial in May, and now, the criminal indictment in July. The Regalados’ legal troubles are only just beginning, and the reverberations are being felt across faith-based communities and crypto circles alike.

Ripple Effects: A Setback for Faith and Cryptocurrency Alike

The aftermath is devastating for the more than 300 investors—many of whom were motivated by genuine faith and a desire to support their church community. Their losses are not just financial; they’re spiritual and communal. When trust is weaponized, it leaves scars that take years to heal. The case has prompted soul-searching among religious organizations and a new skepticism toward any investment “blessed” by church leaders. For the wider cryptocurrency sector, it’s another black eye—proof that the lack of regulation and oversight in digital assets invites the worst kind of fraudsters. Law enforcement and regulators are now signaling a tougher stance, not just against affinity fraud but against unregulated crypto tokens and exchanges.

The broader implications reach beyond this one scheme. When a faith leader can leverage their pulpit for a quick buck, everyone suffers: believers, honest churches, and even the reputation of digital innovation. Cases like this one fuel calls for investor education, tighter regulation, and a return to good old-fashioned skepticism—especially when someone claims “God told me to take your money.” The message for conservative Americans: vigilance isn’t just patriotic, it’s common sense.

Expert Analysis: A Warning for Every Community

Colorado Securities Commissioner Tung Chan’s blunt assessment says it all: “New coins and new exchanges are easy to create with open source code. We want to remind consumers to be very skeptical.” The lesson is clear—just because someone preaches from a pulpit doesn’t mean their investment advice is gospel. Affinity fraud, where scammers target their own communities, is nothing new, but cryptocurrencies make it easier than ever to pull off. Academic experts have long warned about this risk, and the Regalado case is now Exhibit A.

Regulators and law enforcement see this indictment as a precedent—one that could shape future enforcement against similar scams. The only way to stop such abuse is with vigilance, education, and the courage to call out those who abuse trust, no matter how righteous they claim to be. For Americans who value faith, family, and financial security, this case is a wake-up call: don’t let your guard down, and don’t let anyone—politician or preacher—sell you something that sounds too good to be true.