Press Release: Denver District Court Rules INDXcoin Cryptocurrency Scheme was a Fraud

Denver - September 16, 2025 - Denver District Court Judge Heidi L. Kutcher ruled in favor of Colorado Securities Commissioner Tung Chan and found that Eligio Jr. (Eli) and Kaitlyn Regalado of Denver, and INDXcoin LLC committed securities fraud in violation of the Colorado Securities Act.

The decision, issued on September 12, 2025, follows a three-day bench trial held May 5-8, 2025. Judge Kutcher entered a judgment of $3,339,422.15, joint and several, against defendants Eli and Kaitlyn Regalado, and various other defendants.

Commissioner Chan initiated the case on January 16, 2024, when she filed civil fraud charges against the defendants. In the original complaint, Commissioner Chan alleged that Eli Regalado Jr., a pastor in Denver, and his wife Kaitlyn, created, marketed and sold a worthless cryptocurrency known as the INDXcoin.

From June 2022 to April 2023, INDXcoin raised nearly $3.4 million from more than 300 individuals. The complaint alleged that the Regalados targeted Christian communities in Denver and made numerous misrepresentations and omissions to lure investors.

The Regalados had no experience in cryptocurrency, which was clear when an auditor hired by the Regalados gave a security code score of 0 out of 10. Despite that report, which wasn't disclosed to investors, the Regalados promoted the INDXcoin as a low- risk, high-profit investment. They promised the coins would be traded on the Kingdom Wealth Exchange (KWE), an online cryptocurrency exchange that they created, which collapsed after a day of trading.

The case gained international attention through Eli Regalado Jr.'s social media activity. In a YouTube video that went viral, he admitted to using investor funds to pay outstanding taxes and for a "home remodel the Lord told us to do." He further stated
that "the charges are that me and Kaitlyn pocketed $1.3 million… I just wanted to come out and say those charges are true."

The Regalados had no other source of income at the time and used investor money to fund a lavish lifestyle that included jewelry, luxury ski and yachting trips, designer clothes, dental work and even a Range Rover.

On April 15, 2025, the Denver District Court granted summary judgment in favor of Commissioner Chan on the threshold issue that the investments sold by the defendants met the definition of a security under the Colorado Securities Act. The Court's most recent decision that the Regalados fraudulently sold the investments resolves all outstanding issues in the civil case brought by the Commissioner.

In a separate matter, on July 22, 2025, a Denver grand jury criminally indicted Eli and Kaitlyn Regalado on 40 counts regarding the alleged multi-million-dollar cryptocurrency scam.

"The Regalados are 21st century false prophets who leveraged the new and promising technology of cryptocurrencies to run an old-fashioned scam, victimizing their own congregants and others," said Commissioner Chan.

"The Colorado Securities Division works hard to prosecute securities fraud throughout the state. This case of a local pastor scamming Coloradans right here in our cities and towns is the kind of case that shows why we need state regulators on our home front who will fight for small investors, the regular people who are just trying to pay bills, save for retirement, put food on the table. The cryptocurrency market has expanded to over $4 trillion and with it come scammers. When crypto frauds are hitting home, that's where we are. The Court's holding is a win for Colorado investors, for justice and fair play, and for every legitimate cryptocurrency project out there. We are proud to be part of this work."

If you've lost money to an investment scam, contact the Division of Securities at [email protected] or call 303-894-2320.