Divine Deception: Colorado Pastor Accused of $3.2 Million Crypto Fraud
When the investors voiced their concerns, the Pastor said God told him to “HODL”
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.
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Legal Action
- 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.
Additional Allegations
- 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
