The pastor of an online church in Colorado, accused of defrauding investors of over $3.2 million (NZ$5 million) using a cryptocurrency marketplace, alleges that “the Lord” directed him to do so. The Colorado Securities Commissioner accused Eli Regalado and his wife, Kaitlyn Regalado, of civil fraud. The pair allegedly targeted the Christian community by promising financial success if they invested in INDXcoin, a cryptocurrency he designed. According to a complaint filed on January 16, investigators from the Colorado Division of Securities determined that between June 2022 and April 2023, INDXcoin raised around $3.2 million from over 300 investors who acquired the “essentially worthless” and “illiquid” commodity.
Regalado, who ran a cryptocurrency marketplace spent at least $1.3 million (NZ$2.1 million) of their profits on an opulent lifestyle
“Mr Regalado took advantage of the trust and faith of his Christian community and peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” Colorado Securities Commissioner (CSC) Tung Chan said. Investigators claimed that the Regalados, who ran a cryptocurrency marketplace called the Kingdom Wealth Exchange, spent at least $1.3 million (NZ$2.1 million) of their profits on an opulent lifestyle that included tens of thousands of dollars on jewellery, designer handbags, cosmetic dentistry, clothing, and home remodelling. The couple, who closed the trade on November 1, are also accused of using a portion of the funds to finance the purchase of a Range Rover. Regalado stated in a nine-minute video released on Friday that the charges against him “are true.” “Out of that $1.3 (million), half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel that the Lord told us to do,” he stated.
“What we’re praying for, and what we’re believing for still is that God is going to do a miracle,” he added. “God is going to work a miracle in the financial sector. He’s going to bring a miracle into INDXcoin. Everyone that has come in for money is going to be able to receive money back,” said Regalado. Regalado further stated that he would move the court to address the allegations against him and his spouse. “Either I misheard God, and every one of you who prayed and came in – you as well. Or two, God is still not done with this project,” he said. Furthermore, the complaint alleges that the couple promised investors that while they would “tithe” and “sow” in the organization that assisted widows and orphans, “the payments to ‘widows and orphans’ were primarily to the Regalados.” According to the cryptocurrency marketplace CoinMarketCap, there are over 2 million cryptocurrencies in use today, as well as 701 cryptocurrency exchanges where investors may trade them.