Pastor Eligio “Eli” Regalado and his wife Kaitlyn, associated with Victorious Grace Church in Denver, reportedly raised $3.2 million through a crypto token called INDXcoin, news website Decrypt reports.
The token was marketed to Christians, claiming divine instruction for its creation.
Table of Contents
- The Colorado Securities Commissioner sued the couple for deceiving investors and selling unregistered securities.
- A Colorado judge has frozen the assets of Victorious Grace Church based on these allegations.
Misrepresentation of INDXcoin
- The Regalados claimed INDXcoin was pegged to a crypto index and backed by substantial assets.
- In reality, the coin had minimal backing, with the couple claiming divine endorsement.
- Eli Regalado told investors their success was “guaranteed by God.”
- They insisted INDXcoin was a utility coin, not a security, despite expert advice to the contrary.
- The couple controlled Kingdom Wealth Exchange, the only platform for exchanging INDXcoin for USD, which they occasionally shut down.
- Investors were encouraged to keep their investments despite concerns, with Eli claiming divine guidance to “HODL.”
Misuse of Funds
- The Regalados allegedly used $1.3 million of the raised funds for personal expenses like luxury items, vacations, and home renovations.
- Eli Regalado admitted to pocketing $1.3 million but claimed part of it went to the IRS and home renovations as instructed by God.
Upcoming Legal Proceedings
- A hearing is scheduled for January 29 to discuss the request for a preliminary injunction.
- The hearing will address the violation of state securities laws and the legitimacy of the Regalados’ claims of divine guidance.
This article is published on BitPinas: Divine Deception: Colorado Pastor Accused of $3.2 Million Crypto Fraud