Eli Regalado said the charges were true but that he was just following the word of God. | Courtesy: Brooks Elliott/Getty Images
KEY POINTS
- A pastor accused of cryptocurrency fraud said God told him to do it in his dream.
- Eligio Regalado and his wife allegedly sold a 'worthless' cryptocurrency with no clear outlet to their followers.
- The couple is accused of using the funds raised for personal gain.
An online pastor who has been accused of fraud for pocketing $1.3 million through a cryptocurrency scam claims God made him do it. Eligio Regalado and his wife Kaitlyn are accused of selling a 'worthless' cryptocurrency to his followers in Denver, Colorado, but he maintains that โthe Lordโ told him to divert the money.
The couple co-founded, marketed and sold a cryptocurrency called INDXcoin through a cryptocurrency exchange, also run by them, raising nearly $3.2 million from more than 300 buyers between June 2022 and April 2023, the Securities Division said. of Colorado, citing a civil complaint. filed in Denver District Court by the Colorado Attorney General's Office.
"We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he sold them extravagant promises of wealth when he sold them essentially worthless cryptocurrencies," Colorado Securities Commissioner Tung Chan said in a release.
"The complaint alleges that Regalado targeted Christian communities in Denver and claimed that God directly told him that investors would become rich if they invested money in INDXcoin."
Victorious Grace Church, an online-only church where Regalado serves as pastor, raised most of the more than $3 million.
He uploaded a video statement last week, admitting that he was rightly accused of fraud, although he was only following what God told him in his dream.
"The charges are that Kaitlyn and I pocketed $1.3 million, and I just want to say that those charges are true," Regalado said in the clip.
"So $1.3 million has been withdrawn. I think it was a total of $3.4 million. But of that $1.3, half a million dollars went to the IRS. [Internal Revenue Service as tax] and a few hundred thousand dollars went toward a house remodel that the Lord told us to do.โ
The pastor further stated that he did not want investors to be angry about his prosecution.
โI mean, if you think about this: we sold a cryptocurrency without a clear exit. We did it. โWe took Godโs word and sold a cryptocurrency with no clear way out.โ
The Regalados spent the illicitly raised money to buy a Range Rover, luxury handbags and jewelry, in addition to hiring an au-pair, renting boats and other recreational activities.
