Denver Pastor and Wife Charged in $3.4 Million Crypto Fraud Scheme

Colorado Pastors Indicted in Multi-Million Dollar Cryptocurrency Scam Targeting Congregation

Denver, CO – A Colorado pastor and his wife are facing a barrage of felony charges, accused of orchestrating a cryptocurrency scam that allegedly defrauded their Christian community out of nearly $3.4 million. Eli and Kaitlyn Regalado, leaders of the online-only Victorious Grace Church, were indicted by a Denver grand jury on 40 counts, including theft, securities fraud, and racketeering.

Investigators allege that Eli Regalado,with his wife’s involvement,convinced parishioners that God had directed him to create a cryptocurrency known as INDXcoin and a related marketplace,Kingdom Wealth Exchange. He presented these ventures as a “wealth transfer” for the faithful.

However,according to the Denver District Attorney’s office,only a small portion of the solicited funds was allocated to the businesses. The indictment claims that at least $1.3 million of the $3.4 million raised was channeled directly into the couple’s personal bank and Venmo accounts. These funds were reportedly used for personal expenses, including plane tickets, vehicle payments, and a home renovation that Eli Regalado attributed to divine instruction.

In a video that has since been removed, Eli Regalado reportedly acknowledged that he and his wife had taken the money but maintained that the project was still divinely supported and appealed to his congregation for continued backing.

Evidence suggests the Regalados were aware of the deception. Investigators stated in the indictment that the couple knowingly misrepresented INDXcoin as a secure and lucrative investment, despite an audit that reportedly found the project to be neither safe nor stable.

“These charges mark a major step forward in our work to hold the Regalados accountable for their alleged crimes and to bring a measure of justice to the victims,” stated District Attorney John Walsh.

the Regalados are scheduled for a bail hearing on Thursday.

What specific red flags regarding investment promises should individuals be aware of, as illustrated by the MIRACLE Token scheme?

The Allegations: A Multi-Million Dollar deception

A Denver-area pastor and his wife are facing federal charges related to a $3.4 million cryptocurrency fraud scheme.The couple, identified as Dominic and Bernice Rimer, allegedly defrauded investors through a cryptocurrency project called “MIRACLE Token.” The scheme,operating between 2018 and 2021,promised substantial returns on investments in the token,marketed as a pathway to financial freedom and aligned with their religious ministry. However, authorities claim the funds were largely used for personal expenses, including luxury items and mortgage payments. This case highlights the growing risks associated with crypto scams and the importance of due diligence when investing in digital assets.

How the MIRACLE Token Scheme Operated

The Rimers, operating under the guise of their ministry, presented MIRACLE Token as a revolutionary investment opportunity.Here’s a breakdown of how the alleged fraud unfolded:

Marketing & Recruitment: The couple leveraged their position as religious leaders to attract investors, primarily within their congregation and broader community. they promoted the token through seminars, social media, and direct outreach.

False Promises: Investors were led to believe that MIRACLE Token was backed by a proprietary trading algorithm and guaranteed significant profits. These claims were demonstrably false.

Ponzi-Like Structure: Evidence suggests the scheme operated similarly to a Ponzi scheme, where early investors were paid with funds from new investors, creating the illusion of profitability.

Lack of Transparency: The Rimers allegedly failed to provide investors with clear and accurate information about the risks involved and the actual use of their funds.

Crypto Wallet Manipulation: Funds were transferred through various cryptocurrency wallets and ultimately diverted for personal gain.

The Charges and Potential Penalties

Dominic and Bernice Rimer have been charged with wire fraud and money laundering. If convicted, they could face significant prison sentences and financial penalties.

Wire Fraud: Carries a maximum sentence of 20 years in prison and a fine of up to $250,000 per count.

Money Laundering: Carries a maximum sentence of 10 years in prison and a fine of up to $500,000 per count.

Asset Forfeiture: The government is seeking forfeiture of assets obtained through the fraudulent scheme, including real estate, vehicles, and cryptocurrency holdings.

The Rise of Crypto Fraud & Investor Protection

this case is not isolated. The popularity of cryptocurrencies has attracted a surge in fraudulent schemes, preying on both novice and experienced investors. The decentralized nature of crypto, while offering benefits, also presents challenges for law enforcement and regulatory bodies.

Here are some common types of crypto fraud to be aware of:

Pump and Dump schemes: Artificially inflating the price of a cryptocurrency before selling off holdings for a profit, leaving other investors with losses.

Rug Pulls: Developers abandon a project and abscond with investors’ funds.

Phishing Scams: Deceptive emails or websites designed to steal private keys or login credentials.

Fake ICOs (Initial Coin Offerings): Fraudulent projects that raise funds through ICOs without delivering on their promises.

Protecting Yourself from Cryptocurrency Scams: Practical Tips

Protecting your investments in the digital currency space requires vigilance and a healthy dose of skepticism. Consider these steps:

1. Do Your Research: Thoroughly investigate any cryptocurrency project before investing. Look for whitepapers, team information, and independent reviews.
2. Be Wary of Guaranteed Returns: No investment can guarantee profits. Promises of high returns with little to no risk are a major red flag.
3. Understand the Technology: Familiarize yourself with the basics of blockchain technology and how cryptocurrencies work.
4. Secure Your Wallet: use strong passwords, enable two-factor authentication, and consider using a hardware wallet for added security.
5. Diversify Your Portfolio: Don’t put all your eggs in one basket. Diversify your investments across different cryptocurrencies and asset classes.
6. Report Suspicious Activity: If you suspect you’ve been a victim of crypto fraud, report it to the Federal Trade Commission (FTC