A Colorado pastor accused of orchestrating a $3 million cryptocurrency scam with his wife is now asserting that he received divine instructions from “the Lord” to carry out the entire fraudulent scheme. Eligio Regalado allegedly preyed on the Christian community, claiming that God had promised wealth to investors who put their money into INDXcoin.
Regalado and his wife, Kaitlyn Regalado, face civil fraud charges from the Colorado Division of Securities, as their cryptocurrency INDXcoin amassed nearly $3.2 million from over 300 individuals, according to a press release by the Colorado Department of Regulatory Agencies.
The complaint alleges that the couple “created, marketed, and sold a cryptocurrency” specifically targeting members of the Christian community. Mr. Regalado, who leads the online-only Victorious Grace Church, reportedly exploited believers by asserting that God assured him that investments in INDXcoin would lead to prosperity.
The couple allegedly incorporated prayers and Bible quotes into their presentations, promising investors “abundance” and “blessings.” They also introduced their cryptocurrency through a self-controlled online exchange platform called “Kingdom Wealth Exchange” (KWE).
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Despite lacking any prior experience in cryptocurrency dealings, the Regalados are accused of persistently promoting INDXcoin as a low-risk, high-profit investment, even after a third-party auditor deemed the code “unsafe, unsecure, and riddled with serious technical problems.”
Tung Chan, the Colorado Division of Securities commissioner, denounced the pastor, stating, “We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies.”
The Regalados allegedly used investor funds to finance their extravagant lifestyle, including expenditures on jewelry, luxury handbags, cosmetic dentistry, clothes, boat rentals, home renovations, and a Range Rover. Shockingly, hundreds of thousands of dollars were also transferred to their church, according to the complaint.
In a video statement to the INDXcoin community (see it below), Mr. Regalado admitted to spending funds on home remodeling based on the Lord’s instructions. He claimed that God appeared to him in a dream, providing guidance on running the cryptocurrency exchange and assuring that a miracle would resolve the project’s issues.
Eligio "Eli" Regalado, a online pastor was charged in CO for a $1.3 million crypto scam. He's released a 9-minute-long video explaining that the Lord told him to sell a cryptocurrency with no clear exit", and spend some of the proceeds on "a home remodel the Lord told us to do".… pic.twitter.com/9AEkkQ9yYA
— Bob Mather Poker (@BobMatherPoker) January 21, 2024
The absurdity of the pastor’s defense becomes more apparent as he attributes financial mismanagement to divine intervention, leaving the Colorado Division of Securities to pursue legal action against the couple and urging affected investors to come forward.
