Denver Pastors Indicted for Cryptocurrency Fraud
Elizio Peter and Caitlyn Marie Legalad, who lead the online-only Victory Grace Church, have been charged in Denver with allegedly swindling investors out of at least $3.4 million through a cryptocurrency scam.
A recent indictment lists multiple felony counts against the couple, asserting they used their Indian Coin business to deceive investors, claiming divine guidance in selling digital currency. Furthermore, it is alleged that they misappropriated $1.3 million from the investment fund for personal expenses.
In a video, Regarado admits, “Caitlyn and I took $1.3 million. I think the total was $3.4 million, but out of that $1.3, $500,000 went to the IRS and a few hundred thousand was used for home renovations that we felt, well, the Lord directed us to do.”
The charges were filed Tuesday in Denver District Court and include violations of the Colorado Organized Crime Control Act, as well as several theft and securities fraud counts. These allegations depict a sophisticated scheme that exploited investors’ trust.
The indictment specifies that the couple used funds meant for cryptocurrency for their own personal benefit. Their list of expenditures reportedly includes taxes, home renovations, living expenses, clothing, and more.
Denver District Attorney John Walsh commented on the indictment, stating, “These accusations are a significant step in holding the Regalados accountable for their alleged crimes and providing justice for the victims.”
Between January 2022 and July 2023, the Regalados operated under various entities and allegedly misled investors with false promises about their cryptocurrency, Indxcoin. They are accused of presenting deceptive statements and failing to disclose crucial information, resulting in significant investor losses.
Indxcoin was marketed as an “index-based cryptocurrency” that claims to track the value of the top 100 cryptocurrencies. However, the white paper indicated that the coin had no genuine value and could only be traded on the Regalados’ platform.
Their promotional efforts were steeped in religious language, encouraging investors to believe that their contributions would lead to blessings and wealth. However, many of the claims made about Indxcoin’s safety and audits were, in reality, misleading.
Detailed financial losses for individual victims range from $25,000 to over $200,000. The Regalados operated their business from a Denver address, but it was registered in Wyoming and lacked proper licensing in Colorado.
