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.
