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Colorado pastor, Eli Regalado, and his wife are facing accusations of pocketing $1.3 million through a cryptocurrency fraud scheme. The couple marketed their cryptocurrency, INDXcoin, to Christian communities in Denver. They told their followers that God instructed them to do so, promising wealth for those who invested.

https://youtu.be/MYB23Q3gJgE?si=hoZ_Ffbf04HOTFkH

His latest explanation is that although God told him to do it, he may have “misheard.”

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Colorado Pastor charged

The Colorado Division of Securities  released the details on January 18.

The INDXcoin venture managed to raise nearly $3.2 million, with at least $1.3 million allegedly going directly to the Regalados or being used for their personal benefit.

 The complaint, filed in Denver County District Court, outlines the charges against the couple, who are the only listed employees of the online-only Victorious Grace Church.

Eli Regalado, who claimed to have been called to the faith while serving a prison sentence 20 years ago, addressed the charges in a video statement to his followers.

 In the video, he admitted the truth of the accusations, stating that out of the $1.3 million, half a million went to the IRS, and the rest was used for a home remodel as directed by the Lord.

The complaint further alleges that the couple spent the investors' funds on personal luxuries such as a Range Rover, luxury handbags, jewelry, an au pair, boat rentals, and snowmobile adventures. Consequently, the Regalados now face charges of violating anti-fraud provisions under the Colorado Securities Act.

Colorado Securities Division

Colorado Securities Commissioner Tung Chan emphasized that the civil fraud charges were filed after complaints from individuals who had invested and lost money through INDXcoin.

Chan stated that Mr. Regalado exploited the trust of his Christian community, making outlandish promises of wealth with essentially worthless cryptocurrencies.

The Securities Division revealed that INDXcoin, promoted as a low-risk, high-profit investment tied to the average value of the top 100 cryptocurrencies, was, in reality, "illiquid and practically worthless."

The cryptocurrency was exclusive to Kingdom Wealth Exchange, which has since been shut down, rendering INDXcoin unsellable.

Regalado, lacking a background in cryptocurrency or exchange, claimed divine inspiration for launching INDXcoin and Kingdom Wealth Exchange. Despite the ill-fated outcome, he insisted that they believed in a financial miracle from God.

Faith-based marketing on-line

The pastor advertised INDXcoin through presentations at his church and others, reaching out to the Christian community. The complaint details the sale of nearly $3.2 million worth of unregistered securities from June 2022 to April 2023.

Regalado's videos on INDXcoin’s YouTube channel featured him quoting Bible verses and encouraging investors to expect a "miracle" as they waited for "God’s plan" to unfold. However, the complaint reveals that funds intended for causes helping widows and orphans primarily went into the Regalados' pockets.

The securities commissioner expressed deep sympathy for those who trusted the pastor, emphasizing the heartbreak caused by exploiting faith for financial gain.

 Eli 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.

They are scheduled to appear in Denver District Court next week, urging other INDXCoin investors to contact the Colorado Division of Securities.