A Colorado pastor at the center of a cryptocurrency scandal is claiming divine inspiration for his actions, which have left him and his wife facing serious allegations of defrauding their online congregation. Eli Regalado and his partner Kaitlyn are accused by Colorado's securities commissioner of swindling over $3 million from the Christian community by selling them what has been called a "worthless" cryptocurrency, INDXcoin.
According to a civil fraud charge filed by Commissioner Tung Chan and detailed by CBS News Detroit, the Regalados convinced investors to buy into the idea that God would grant them prosperity if they invested in the digital token, INDXcoin. They ran a cryptocurrency exchange named Kingdom Wealth Exchange, which is now inexplicably defunct as of November 1. Eli Regalado admitted in a video confession to making $1.3 million from investors and, while some of that money reportedly went to the IRS, funds were also used for personal indulgences, such as home renovations and a Range Rover.
The couple's now-shuttered online platform, marketed to their digital congregation through Victorious Grace Church, seems to have been more about capitalizing on faith than sharing in blockchain blessings. 9News reports that over 300 people fell victim to the scheme, enticed by promises of heavenly riches. The investigation found that INDXcoin was "illiquid" and "essentially worthless."
Despite the growing legal pressure, Regalado still maintains his innocence and a conviction that divine intervention will prevail. "What we're praying for, and what we're believing for still is that God is going to do a miracle," he said in a video statement, as quoted by 9News. His faith-based defense extends to prospective financial miracles he insists will bail out INDXcoin. Yet, this assurance comes too late for the exchange which, Regalado claimed, had to shutter due to a shortage of funds to "keep the internal servers running." Details provided by Cointelegraph indicate that half of the raised investor money went to the IRS and a significant sum was allocated to a home remodeling project that Regalado described as divinely backed.
The couple is set to face the music in court on January 29, with the Regalados having to answer to allegations that include violating several provisions of the Colorado Securities Act. While faith is a cornerstone for many, this case serves as a stark reminder of the blurring lines between spirituality and investment, especially in the volatile world of cryptocurrency.
