DENVER (AP) — A Colorado pastor leading an online church faces allegations of defrauding investors exceeding $3.2 million through a cryptocurrency marketplace, which he operated alongside his wife. Eli Regalado contends that "the Lord" guided him in organizing the venture.
The securities commissioner in Colorado has filed civil fraud charges against Eli Regalado and his wife, Kaitlyn Regalado, asserting that the couple specifically targeted the Christian community. They purportedly promised followers that investing in their cryptocurrency, named INDXcoin, would bring wealth as ordained by God.
An investigation by the Colorado Division of Securities revealed that between June 2022 and April 2023, INDXcoin garnered over $3.2 million from more than 300 investors. The complaint, filed in January, characterizes the currency as "illiquid" and "essentially worthless."
The Regalados, operators of the Kingdom Wealth Exchange, allegedly diverted at least $1.3 million from investors to fund an extravagant lifestyle. This included substantial expenditures on vacations, jewelry, luxury handbags, cosmetic dentistry, clothing, and home renovations. The couple, who closed the exchange on November 1, is also accused of using funds to buy a Range Rover.
In response to an email seeking comment, Eli Regalado remained silent. However, in a recent video statement to his followers, he acknowledged the veracity of the charges. He claimed that out of the $1.3 million, half a million went to the IRS, and the rest funded a home remodel prompted by divine advice received in a dream.
The online-only Victorious Grace Church, operated solely by the Regalados, conducts its activities from the couple's residence, their recreational vehicle, and vacation spots, as revealed by investigators.
The couple's presentations to pastors and evangelical Christians featured prayer and biblical quotes, urging potential investors to have faith in the cryptocurrency for financial "abundance" and "blessings."
Eli Regalado asserted in an August 2022 video that the cryptocurrency was a divine directive for a "wealth transfer" to God's people.
The Regalados also promised to "tithe" and contribute to causes aiding widows and orphans, but the complaint alleges that these payments primarily benefited the Regalados themselves.
Despite lacking prior cryptocurrency-selling experience, the Regalados are accused of violating the anti-fraud, licensing, and registration provisions of the Colorado Securities Act. They are scheduled to appear in court on January 29.
