A pastor from an online church in Colorado is facing accusations of orchestrating a fraudulent cryptocurrency scheme, allegedly pocketing $1.3 million. Eli Regalado, along with his wife, promoted their cryptocurrency, INDXcoin, within Christian communities in Denver, claiming that God had directed them to encourage investments for wealth accumulation, as per the Colorado Division of Securities.
The Securities Division revealed that INDXcoin raised almost $3.2 million, with at least $1.3 million being misappropriated for the Regalados’ personal use. Charges were filed in Denver County District Court on Tuesday, accusing the couple of violating anti-fraud provisions under the Colorado Securities Act.
In a recent video statement to his followers, Eli Regalado admitted to the charges, explaining that $500,000 went to the IRS, and the rest funded a home renovation that he claimed God instructed them to undertake. The complaint further alleges that the couple spent investors’ funds on luxury items, including a Range Rover, designer handbags, jewelry, an au pair, boat rentals, and snowmobile adventures.
The Colorado Securities Commissioner, Tung Chan, initiated civil fraud charges after individuals who invested in INDXcoin reported financial losses. Chan emphasized that Regalado exploited the trust of his Christian community by making unrealistic promises of wealth through worthless cryptocurrencies.
Regalado marketed INDXcoin as a low-risk, high-profit investment linked to the top 100 cryptocurrencies’ average value. However, the Securities Division revealed that the cryptocurrency was “illiquid and practically worthless,” only available on the now-closed Kingdom Wealth Exchange.
Despite the situation, Regalado, in his video address, expressed faith that God would perform a financial miracle. Many of his followers echoed this sentiment in the comments section, reassuring him that God would turn the situation around.
Eli Regalado, a former car thief turned pastor, launched INDXcoin and Kingdom Wealth Exchange following what he claimed was divine inspiration.
The legal complaint asserts that Regalado advertised INDXcoin through church presentations and collaborations with other pastors, raising nearly $3.2 million from June 2022 to April 2023 by selling unregistered securities.
Regalado, his wife, and their three companies now face charges of securities fraud, unlicensed broker-dealer activity, selling unregistered securities, and imposition of constructive trust.
However, they are scheduled to appear in Denver District Court in the coming week, and individuals who invested in INDXCoin are encouraged to contact the Colorado Division of Securities.