A Colorado-based online church pastor accused of pocketing $1.3 million through a cryptocurrency fraud scheme told followers in a video statement that the Lord told him to do it.
Eli Regalado and his wife marketed their cryptocurrency, INDXcoin, in Christian communities in Denver, saying God told him people would get rich if they invested, the Colorado Division of Securities said. in a sentence Thursday.
INDXcoin raised nearly $3.2 million, the Securities Division said. At least $1.3 million of that amount went directly to the Regalados or was "used for their own personal benefit," according to a complaint filed Tuesday in Denver County District Court.
The Regalados could not be reached for comment. In a video statement to his fans last week, Eli Regalado said allegations that they pocketed $1.3 million "are true."
โOf the 1.3 dollars [million]"Half a million dollars went to the IRS and a few hundred thousand dollars went to a house remodel that the Lord told us to do," he said in the video.
The couple also allegedly spent their investors' funds on a Range Rover, luxury handbags, jewelry, an au pair, boat rentals and snowmobile adventures, according to the complaint.
The couple was charged with violating the anti-fraud provisions of the Colorado Securities Act.
Colorado Securities Commissioner Tung Chan said she filed civil fraud charges after she was approached through INDXcoin by people who invested and lost money.
"We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and sold them extravagant promises of wealth when he sold them essentially worthless cryptocurrencies." Chan said in a statement..
'Illiquid and virtually worthless'
Regalado claimed that God told him that investors would get rich if they invested money in INDXcoin, promoting it as a low-risk, high-return investment tied to the average value of the top 100 cryptocurrencies, the Securities Division said.
In reality, INDXcoin was โillegitimate and virtually worthless,โ the Securities Division said in its statement. The cryptocurrency was only available on the Kingdom Wealth Exchange, which the Regalados closed. It can no longer be sold anywhere.
โWe took God's word and sold a cryptocurrency without a clear exit,โ Regalado in his video speech on Friday. "What we still believe is that God is going to work a miracle. God is going to work a miracle in the financial sector."
In the comments to Regalado's video, dozens of people continue to assure him that God "will change the situation."
Faith-Based Marketing
Regalado was 22 years old and serving a prison sentence for โdriving carsโ when his faith called him to be a pastor 20 years ago, he said in a YouTube live stream. podcast. He began preaching for the online-only Victorious Grace Church, where he and his wife are listed as the only two employees.
Regalado, who had no experience in cryptocurrencies or exchanges, said divine inspiration called him to launch INDXcoin and Kingdom Wealth Exchange.
โIt was last October [20]21 that the Lord brought me this cryptocurrency. He said, 'Take this to my people for a wealth transfer,'โ Regalado said in a video update to INDXcoin followers in August 2022.
Regalado advertised INDXcoin through presentations at his church and others he found through other pastors, according to the legal complaint. From June 2022 to April 2023, the cryptocurrency raised nearly $3.2 million through the sale of unregistered securities, he said.
In videos on INDXcoin's YouTube channel, Regalado quotes Bible verses and tells investors to expect a "miracle" as they wait for "God's plan" to unfold.
Regalado also told investors that they would "tithe" and "sow" into causes that helped widows and orphans, but that the funds primarily went into their own pockets, according to the complaint.
โThey specifically addressed the Christian community and there are many references to Scripture and faith. He disguises himself with that so that people give him their money,โ said Chan, the securities commissioner. "That's really heartbreaking for the people who trusted him."
Eli Regalado, his wife and their three companies are charged with securities fraud, unlicensed stockbroker activity, sale of unregistered securities and imposition of constructive trust.
They are scheduled to appear in Denver District Court next week, according to the court docket.
Chan urges others who have invested in INDXCoin to contact the Colorado Division of Securities.
