Denver Pastor Indicted in $3.4M INDXcoin Faith-Based Scam
Eli and Kaitlyn Regalado, a pastor couple from Denver, were indicted on 40 felony counts for orchestrating a $3.4M INDXcoin scam. Between January 2022 and July 2023, they sold the INDXcoin token via their Kingdom Wealth Exchange platform to over 300 church members. The Justice Department says INDXcoin had no real market value. Investors lost all funds.
Prosecutors allege the Regalados diverted $1.3M of investor money for personal use. They bought a Range Rover, high-end designer items and funded home renovations described as “guided by the Lord.” Court filings accuse them of using religious messaging and promises of high returns to build trust. When investors asked for withdrawals, Eli told them to “hold” his heavenly guidance.
The couple faces charges including theft, securities fraud and racketeering. In a later deleted video, Eli admitted the INDXcoin scam but encouraged followers to remain invested. This case underscores the rising risk of faith-based crypto fraud. Traders should conduct strict due diligence on new tokens like INDXcoin scam to avoid similar traps.
Bearish
The indictment of Eli and Kaitlyn Regalado in the $3.4M INDXcoin scam is bearish for INDXcoin and similar tokens. Legal actions will likely eliminate any market value of INDXcoin. Traders will lose confidence in obscure, self-issued tokens. In the short term, token trading will face sell pressure and delisting risks. Over the long term, increased regulatory scrutiny will raise barriers for faith-based and community-driven crypto projects, curbing speculative rallies. These factors point to sustained bearish pressure on INDXcoin.