- Colorado digital church leader faces accusations of defrauding investors through a cryptocurrency scheme.
- Pastor claims divine guidance in defrauding investors of nearly $3.2 million.
- The couple spent investor funds on a lavish lifestyle, targeting the Christian community with INDXcoin.
The leader of a digital church in Colorado is facing accusations of defrauding investors of nearly $3.2 million through a cryptocurrency scheme.
The Colorado digital church leader, facing charges for defrauding investors of nearly $3.2 million (NZ$5 million) through a cryptocurrency scheme, asserts that he was guided by “the Lord” to engage in such actions.
Eli Regalado and Kaitlyn Regalado are facing civil fraud charges from the securities commissioner of Colorado. It’s alleged that the couple focused on the Christian community, promising them financial prosperity through investment in a cryptocurrency they created, named INDXcoin.
In a complaint lodged on January 16, it was revealed by the Colorado Division of Securities that from June 2022 to April 2023, INDXcoin managed to collect approximately $3.2 million from more than 300 investors in exchange for a commodity that was described as “essentially worthless” and “illiquid.”
“Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies.”
Colorado Securities Commissioner (CSC) Tung Chan
The operators of a cryptocurrency marketplace known as the Kingdom Wealth Exchange allegedly used at least $1.3 million (NZ$2.1 million) of investor funds to support a lavish lifestyle, which included significant expenditures on jewelry, high-end handbags, cosmetic dental work, apparel, and home renovations. Additionally, they are accused of using some of the funds to finance the purchase of a Range Rover. This trading platform was shut down on November 1.
In a video statement lasting nine minutes, made public on Friday, Pastor Regalado confirmed the accuracy of the accusations against him, stating, “the allegations made against me are true.”
Regalado disclosed that of the $1.3 million, $500,000 was allocated to the IRS, with a substantial portion also funding a home renovation that he claimed was divinely instructed. “We acted on what we believed was God’s direction,” he explained in the video.
Regalado expressed his continued faith in a divine intervention, hoping for a miraculous turnaround in the financial realm that would positively impact INDXcoin and ensure that all investors receive their funds back. “We are holding onto faith for a financial miracle that will transform the situation with INDXcoin,” he remarked.
He also mentioned his intentions to legally confront the charges against him and his wife, pondering whether there was a misinterpretation of divine guidance or if the project’s divine purpose is yet to be fulfilled. “We are faced with two possibilities: either we misinterpreted God’s message, or the divine plan for this project is still unfolding,” Regalado commented.
