Online Colorado Pastor Admits to $1.3M Cryptocurrency Fraud, Claims Divine Guidance
Summary:
Eli Regalado, a Colorado-based online pastor, has confessed to a fraudulent scheme involving the sale of a worthless cryptocurrency, INDXcoin. He alleges his action was guided by divine instruction. He and his partner, Kaitlin Regalado, are accused of amassing $1.3 million from this scam which primarily targeted their Christian followers' trust with promises of enriching them. Despite claiming near poverty, they allegedly spent a majority of the unfairly gained sum on luxury goods and services.
Eli Regalado, a pastor from Colorado who operates online, has confessed to committing fraud by selling an essentially valueless cryptocurrency, alleging he was instructed by “the Lord" to offer his followers a "10X". In an odd 9-minute video uploaded on the official website of INDXcoin, Regalado, founder of INDXcoin, acknowledges the accusations brought against him and his associate as accurate. He states, “Kaitlin and I are accused of amassing $1.3 million, and I must admit these allegations are correct.”
On January 18, the Colorado Securities Commission filed fraud charges against both Eli and Kaitlin Regalado for their parts in introducing and promoting a counterfeit token, “INDXcoin”, to their followers. Via a 9-minute video, the pastor stated that he was divinely guided to sell the unfounded cryptocurrency and use part of the profits for a "house renovation commanded by the Lord".
Colorado Securities Commissioner, Tung Chan, states in his charge that Mr. Regalado exploited the trust of his Christian followers by selling them an absolutely valueless cryptocurrency with false promises of financial gains. It is alleged that Regalado targeted Christian groups in Denver stating that God had communicated directly to him, promising wealth to investors if they invested in INDXcoin.
Between June 2022 and April 2023, INDXcoin raised approximately $3.2 million from over 300 investors through a platform known as the Kingdom Wealth Exchange, as asserted by the Colorado regulator. The major portion of this investment came from Victorious Grace Church, an exclusively online church where Regalado is a serving pastor. Out of the total money raised, half was reportedly given to the IRS for taxes, while a considerable amount was used for home renovations inspired by divine guidance. Regalado claimed that "a few hundred thousand dollars went for the home remodeling ordered by the Lord."
Regalado closed the Kingdom Wealth Exchange on November 1 last year, stating insufficient funds to maintain the server operations, and implying that he and his partner were almost impoverished. In the same announcement, he told INDXcoin investors that God wanted them to avoid selling the token and urged his congregation to stop being obsessed with wealth.
Even with their proclaimed near-poverty, a lawsuit filed by Commissioner Chan alleges that the pair spent much of the $1.3 million on cosmetic dentistry, designer handbags, snowmobiles, house makeovers, and luxury vacations. Cointelegraph reached out to Regalado for a response, but did not receive one immediately.
Published At
1/22/2024 4:45:01 AM
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