A Denver District Court has ruled that INDXcoin, a cryptocurrency promoted by local pastor Eli Regalado and his wife Kaitlyn, was a fraudulent investment scheme. Judge Heidi L. Kutcher entered a $3.34 million judgment against the couple and their company, INDXcoin LLC, finding them liable for securities fraud.

Between June 2022 and April 2023, the Regalados raised nearly $3.4 million from more than 300 investors, largely drawn from Denver’s Christian community. They promised low-risk, high-return investments through their Kingdom Wealth Exchange platform. However, the exchange collapsed within a day, leaving investors with nothing. Despite warnings from an auditor who rated the project’s security “0 out of 10,” the couple continued promoting it as safe.

The court’s ruling, issued on September 12 after a three-day trial, resolves a civil fraud case filed in January 2024 by Colorado Securities Commissioner Tung Chan. Regulators presented evidence showing the Regalados misused investor funds on luxury items, including a Range Rover, jewelry, trips, designer clothing, and dental work. In a widely shared video, Eli Regalado admitted using funds for taxes and a “home remodel the Lord told us to do.”

Colorado officials accused the Regalados of exploiting religious trust and lack of crypto knowledge to deceive victims. Commissioner Chan called them “21st century false prophets” who used the hype around cryptocurrency to run a classic scam. The civil ruling follows an April decision confirming INDXcoin was a security under state law, and a criminal indictment in July that charged the couple with 40 counts related to the scheme.