A Colorado-based pastor for a web-based church who allegedly pocketed $1.3 million via a cryptocurrency fraud scheme advised followers in a video statement that the Lord advised him to take action.
Eli Regalado and his spouse marketed their cryptocurrency, INDXcoin, to Christian communities in Denver, saying that God advised him folks would change into rich in the event that they invested, the Colorado Division of Securities stated in a statement Thursday.
INDXcoin raised almost $3.2 million, the securities division stated. At the least $1.3 million of that went on to the Regalados or was “used for their very own private profit,” a criticism filed Tuesday in Denver County District Courtroom stated.
Eli and Kaitlyn Regalado couldn’t be reached for remark, however in a video assertion to his followers final week, Eli Regalado stated the fees that they pocketed $1.3 million “are true.”
“Out of the $1.3 [million], half one million {dollars} went to the IRS and some hundred thousand {dollars} went to a house rework the Lord advised us to do,” he stated within the video.
The couple additionally allegedly spent their buyers’ funds on a Vary Rover, luxurious purses, jewellery, an au pair, boat leases and snowmobile adventures, based on the criticism.
The couple have been charged with violating anti-fraud provisions below the Colorado Securities Act.
Colorado Securities Commissioner Tung Chan advised NBC Information that she filed the civil fraud fees after she was approached by individuals who invested and misplaced cash via INDXcoin.
“We allege that Mr. Regalado took benefit of the belief and religion of his personal Christian group and that he peddled outlandish guarantees of wealth to them when he offered them basically nugatory cryptocurrencies,” Chan stated in a press release.
‘Illiquid and practically worthless’
Regalado claimed that God advised him buyers would change into rich in the event that they put cash into INDXcoin, selling it as a low-risk, high-profit funding pegged to the typical worth of the highest 100 cryptocurrencies, the securities division stated.
In actuality, INDXcoin was “illiquid and virtually nugatory,” the securities division stated in its launch. The cryptocurrency was solely obtainable in Kingdom Wealth Alternate, which the Regalados shut down. It could actually not be offered wherever.
“We took God at his phrase and offered a cryptocurrency with no clear exit,” Regalado in his video handle Friday. “What we’re believing for nonetheless is that God goes to do a miracle. God goes to work a miracle within the monetary sector.”
Within the feedback of Regalado’s video, dozens of individuals proceed to guarantee him that God will “flip the scenario round.”
Faith-based marketing
Regalado was 22 and serving a jail sentence for “boosting vehicles” when his religion referred to as him to change into a pastor 20 years in the past, he stated in a YouTube dwell podcast. He started preaching for the online-only Victorious Grace Church, the place he and his spouse are listed as the one two staff.
Regardless of having no cryptocurrency or alternate background, Regalado stated divine inspiration referred to as on him to launch INDXcoin and Kingdom Wealth Alternate.
“It was final October [20]21, that the Lord introduced this cryptocurrency to me. He stated, ‘Take this to my folks for a wealth switch,’” Regalado stated in a video replace to INDXcoin followers in August 2022.
Regalado marketed INDXcoin via shows at his church and others he discovered via different pastors, based on the authorized criticism. From June 2022 to April 2023, the cryptocurrency raised almost $3.2 million by promoting unregistered securities, it stated.
In movies on INDXcoin’s YouTube channel, Regalado quotes Bible verses, telling buyers to count on a “miracle” as they waited for “God’s plan” to unfold.
Regalado additionally advised buyers they might “tithe” and “sow” in causes serving to widows and orphans, however the funds primarily went into their very own pockets, based on the criticism.
“They particularly went out to the Christian group and there’s a number of references to scripture and religion. He cloaks himself in that to get folks to provide their cash to him,” stated Chan, the Colorado securities commissioner. “That’s actually heartbreaking for the individuals who trusted him.”
Eli Regalado, his spouse and his three corporations are charged with securities fraud, unlicensed broker-dealer exercise, promoting unregistered securities and imposition of constructive belief.
They’re scheduled to seem on the Denver District Courtroom subsequent week, based on the courtroom docket.
Chan is urging others who’ve invested in INDXCoin to contact the Colorado Division of Securities.
