Denver Couple Indicted in $3.4 Million Crypto Scam

In a major legal move, a Denver grand jury has handed down a 40-count indictment against Eli and Kaitlyn Regalado. The couple is accused of orchestrating a multi-million-dollar crypto fraud.

According to an official report, the Justice Department operates with a threefold objective: to ensure public safety, promote justice without bias, and strengthen the integrity and equity of the legal system across Colorado.

“We achieve that mission through excellence in our work investigating and prosecuting crime, supporting victims and their families, working with the community to prevent crime, and providing fair alternatives to incarceration in appropriate cases,” the Denver DA’s Office wrote.

Couple Under Investigation for Fraudulent Fundraising

The issue arose when some investors sought to purchase INDXcoin, a digital asset created and promoted by the religious couple. The report disclosed that the Regalados allegedly exploited these investors through religious circles as a means of attracting capital. They assured them of unusually high yield profits.

Authorities claim that between January 2022 and July 2023, the couple raised approximately $3.4 million by soliciting funds from investors. Records show the religious couple diverted at least $1.3 million toward personal use. These included extensive home improvements, according to reports, which they claimed were guided by a message from “the Lord.”

Furthermore, despite raising significant capital, the report revealed that just a fraction of the money made its way into the supposed business endeavor. Prosecutors alleged that INDXcoin carried no financial value, leaving all investors with complete losses on their investments.

Crypto Fraud on the Rise

According to Denver DA John Walsh, these charges represent a significant step in ensuring the Regalados are held accountable for the allegations against them and in helping victims obtain justice.

“I want to thank the prosecutors and investigators in my office, and, particularly, the investigators with the Colorado Division of Securities and the Colorado Attorney General’s Office, whose outstanding work on the case resulted in this indictment,” Walsh said.

Over the years, cases of crypto fraud have increased significantly. For example, five crypto scammers pleaded guilty in a $37 million fraud case, extorting funds from innocent victims.

The individuals allegedly employed manipulation techniques. These included extended phone calls and ongoing text communication to build trust with victims and persuade them to invest in fraudulent crypto schemes.