A prominent Denver ministry faces an uncertain future as its founding couple confronts serious federal charges. Prosecutors have indicted Michael and Sarah Thompson, leaders of Denver’s Abundant Grace Fellowship, for allegedly orchestrating a cryptocurrency investment scheme that defrauded their congregation and community of more than $1 million.
The indictment, unsealed yesterday in U.S. District Court, details how the Thompsons allegedly leveraged their spiritual authority to solicit investments in a fabricated cryptocurrency platform they called “FaithCoin.” According to court documents, the couple promised returns of 25-50% while claiming the investment vehicle was “divinely inspired” and “risk-free.”
“What makes this case particularly troubling is the abuse of trust,” said FBI Special Agent Katherine Reynolds at yesterday’s press conference. “These weren’t anonymous internet scammers, but spiritual leaders exploiting relationships with people who trusted them implicitly.”
Federal investigators claim the scheme began in early 2023 when the Thompsons approached congregation members with investment opportunities following Sunday services. The pastors allegedly described a proprietary trading algorithm that could generate extraordinary returns in volatile cryptocurrency markets.
Court records indicate at least 78 victims invested amounts ranging from $5,000 to $125,000. Many victims reportedly liquidated retirement accounts or took out second mortgages to participate in what prosecutors are calling “nothing more than an elaborate Ponzi scheme.”
The investigation revealed the Thompsons used approximately 85% of investor funds to finance a lavish lifestyle including a $1.2 million mountain home in Aspen, luxury vehicles, and first-class international travel. The remaining funds were allegedly used to make minimal payments to early investors, creating the illusion of legitimacy.
“They showed us screenshots of accounts growing by thousands each week,” said Thomas Mercer, a former congregation member who invested $65,000. “Michael would share testimonies during services from people claiming they’d paid off debts or funded mission trips with their returns. It seemed real.”
The case highlights the growing intersection between religious communities and cryptocurrency investments. According to a recent Pew Research study, faith communities have become increasingly targeted for cryptocurrency schemes, with reported losses exceeding $200 million nationwide since 2020.
“Affinity fraud is particularly effective because it exploits existing trust networks,” explained Dr. Eleanor Martinez, professor of financial ethics at University of Colorado Denver. “When someone you trust spiritually recommends an investment, critical thinking often takes a backseat to faith.”
The investigation accelerated in April when several investors attempted to withdraw funds and were met with excuses and delays. Church member Rebecca Williams became suspicious after receiving a series of conflicting explanations about why she couldn’t access her $42,000 investment.
“First it was a technical issue, then a temporary freeze because returns were so high, then something about international banking regulations,” Williams told investigators. “That’s when I contacted authorities.”
The Thompsons’ legal team released a brief statement maintaining their clients’ innocence and suggesting the investments were legitimate but suffered from “unforeseen market volatility.” They declined further comment when presented with evidence that no actual cryptocurrency trading platform ever existed.
Abundant Grace Fellowship’s board of directors has placed the Thompsons on administrative leave and appointed interim leadership. In a statement, the board expressed “profound disappointment” and pledged full cooperation with authorities while establishing a support fund for affected members.
Financial experts warn this case reflects a broader trend of cryptocurrency-related fraud targeting religious communities. The SEC issued a specific warning last year about investment schemes that incorporate religious language or divine promises.
“When someone guarantees returns and invokes God’s blessing on an investment, those are immediate red flags,” said Marcus Johnson, a financial advisor specializing in fraud prevention. “Legitimate investments always involve risk, and cryptocurrency markets are particularly volatile.”
If convicted, the Thompsons face up to 20 years in federal prison on charges including wire fraud, securities fraud, and money laundering. The couple remains free on $500,000 bond each, with their passports surrendered and travel restricted to Colorado pending trial.
For a congregation built on messages of prosperity and divine blessing, the fallout extends beyond financial losses. “The hardest part isn’t the money,” said former church member Janet Klein. “It’s realizing the people who taught us about honesty and integrity every Sunday were living a complete lie.”
