Crypto Scandals: US Pastor Promises Wealth From God While Widow Loses $17 Million to Romance
Two crypto-related frauds involve exploitation of trust: a pastor's divine scam of $3.4M from followers and a $17M XRP theft from the widow of George Jones. Both cases showcase the dark side of crypto.
Two high-profile crypto-related scandals are in the headlines today, exposing how faith and trust in both religion and relationships were allegedly exploited to perpetrate multimillion-dollar frauds.
The report comes amid increased crypto crime, this time going beyond kidnappings and mutilations.
Pastor Couple Accused of Defrauding Flock With ‘God-Inspired’ Crypto Scheme
In Denver, Pastor Eligio “Eli” Regalado and his wife, Kaitlyn, face 40 criminal charges, including theft, securities fraud, and racketeering.
Prosecutors allege the couple scammed their Christian followers out of $3.4 million. Reportedly, the spiritual leader promoted a worthless cryptocurrency called INDXCoin under the pretense of divine guidance.
According to the Denver District Attorney’s Office, only a “small amount” of the funds went toward the crypto project.
At least $1.3 million was allegedly funneled into the couple’s expenses, including home renovations, vacations, flights, and luxury goods.
In statements to investors, the Regalados said they were acting on instructions from “the Lord.”
“The complaint alleges that Regalado targeted Christian communities in Denver and claimed that God told him directly that investors would become wealthy if they put money into INDXCoin,” said Colorado Securities Commissioner Tung Chan, who brought civil charges against the couple.
Prosecutors assert that the cryptocurrency has “zero value” and that all 300 investors lost their money.
Meanwhile, the Regalados argue that INDXCoin is a “utility coin” for accessing online faith-based communities and does not require registration with regulators.
They maintain they acted on sincere religious beliefs and did not intend to defraud.
Arrested earlier this month, the couple is out on a $100,000 property bond and under intensive pretrial supervision. They also await a judge’s decision following a bench trial held in May.
$17 Million XRP Theft Targets Widow of Country Legend George Jones
Elsewhere, and involving a case of personal betrayal, Tennessee authorities arrested 58-year-old Kirk West.
Allegedly, West stole over $17 million in XRP tokens from his romantic partner, Nancy Jones, the widow of country music icon George Jones.
According to a police report, Nancy Jones had grown suspicious of West’s behavior and asked her granddaughter to secure her valuables.
On June 26, they discovered $400,000 in cash and a Ledger crypto wallet missing from two safes inside her Franklin home.
Authorities say the stolen wallet held approximately 5.5 million XRP tokens. West, who allegedly had sole access to the private key besides Jones, reportedly transferred the funds.
Further, Jones recovered most of the crypto, about 5 million XRP, but still lost around $483,000 worth.
After being kicked out of her home on June 28, West allegedly called Jones, offering to return only $5 million, saying it was “all she would get.” He was arrested at Nashville International Airport on July 24, one day after Jones filed a theft report.
West has been charged with theft over $250,000, and his bond was set at $1 million. He is due back in court on October 23.
Both cases reflect how crypto continues to attract bad actors, exploiting everything from religious faith to romantic trust.
Recently, BeInCrypto reported how a woman lured a Belgian barber into the hands of a London gang in the guise of a romance. Similarly, another incident involved a planned kidnapping, expected to culminate in a mutilation.
As authorities pursue restitution and accountability, the spiritual and personal victims are left counting the cost.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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