A Colorado-based pastor is facing allegations of pocketing $1.3 million through a cryptocurrency fraud scheme, claiming that divine intervention led him to do so. Eli Regalado, a pastor for an online church, and his wife, Kaitlyn Regalado, targeted Christian communities in Denver with their cryptocurrency, INDXcoin. They convinced investors that God told them people would become wealthy if they invested. However, the Colorado Division of Securities revealed that at least $1.3 million went directly to the Regalados or was used for their personal benefit.
Trust Breached in the Name of Faith
The Regalados could not be reached for comment, but in a video statement, Eli Regalado admitted the charges, saying, “Out of the $1.3 [million], half a million dollars went to the IRS and a few hundred thousand dollars went to a home remodel the Lord told us to do.” The couple is accused of using investors’ funds to finance a lavish lifestyle, which included a Range Rover, luxury handbags, jewelry, and even boat rentals and snowmobile adventures.
The charges against the couple include violating anti-fraud provisions under the Colorado Securities Act. Colorado Securities Commissioner Tung Chan condemned Regalado’s actions, stating that he took advantage of the trust and faith of his own Christian community. Chan emphasized that Regalado peddled outlandish promises of wealth, ultimately selling essentially worthless cryptocurrencies to unsuspecting investors.
Illusion of Wealth
Regalado promoted INDXcoin as a low-risk, high-profit investment pegged to the average value of the top 100 cryptocurrencies. However, the Colorado Division of Securities exposed the truth – INDXcoin was illiquid and practically worthless. It was only available on the Kingdom Wealth Exchange, which the Regalados eventually shut down, rendering the cryptocurrency unsellable.
In a desperate attempt to salvage the situation, Regalado stated, “We took God at his word and sold a cryptocurrency with no clear exit. What we’re believing for still is that God is going to do a miracle. God is going to work a miracle in the financial sector.” Despite the severity of the accusations, dozens of people, in the comments section of Regalado’s video, continue to assure him that God will turn the situation around.
Faith-Based Marketing Gone Wrong
Regalado’s journey as a pastor began when he was serving a prison sentence for car theft. He claimed that divine inspiration led him to become a pastor over 20 years ago. Regalado and his wife started the online-only Victorious Grace Church, where they are listed as the only two employees. Despite their lack of cryptocurrency or exchange experience, Regalado said he felt called by God to launch INDXcoin and the Kingdom Wealth Exchange.
Through presentations at his church and collaborations with other pastors, Regalado promoted INDXcoin to unsuspecting investors. The cryptocurrency raised almost $3.2 million by selling unregistered securities. In videos on INDXcoin’s YouTube channel, Regalado quoted Bible verses, promising investors a “miracle” as they waited for “God’s plan” to unfold. However, the funds they received were primarily used for personal gain, betraying the trust of the Christian community.
Eli Regalado, Kaitlyn Regalado, and their three companies now face charges of securities fraud, unlicensed broker-dealer activity, selling unregistered securities, and imposition of constructive trust. They are scheduled to appear in the Denver District Court next week. Colorado Securities Commissioner Chan urges other individuals who have invested in INDXcoin to contact the Colorado Division of Securities.
Source link: F5 Magazine