Denver Pastor and Wife Convicted in $3.4M Crypto Fraud Scheme

A Denver pastor and his wife have been found guilty of orchestrating a $3.4 million cryptocurrency fraud through their company, INDXcoin LLC. Eli Regalado, 45, and Kaitlyn Regalado, 32, marketed INDXcoin as a low-risk, high-return investment tied to the performance of the top 100 cryptocurrencies. The Denver District Court ruled the scheme violated state securities laws.

Judge Heidi Kutcher ordered the couple to repay $3.39 million and barred them from selling crypto or other investments for 20 years. The court noted their "lack of understanding of the harm caused" and their intent to expand the fraudulent operation. Nathanael Enos, an associate who promoted INDXcoin, was also banned for 20 years and must repay $19,600.

The case highlights persistent risks in the crypto space, where promises of indexed returns often mask fraudulent intent. Regulatory scrutiny continues to intensify as authorities crack down on bad actors exploiting investor enthusiasm.