Blockchain
Pastor Created ‘Valueless’ Cryptocurrency Targeted at Christians to Support ‘Lavish Lifestyle’: Authorities
He allegedly claimed that God told him directly that investors would get rich.
January 23, 2024, 8:25am ET
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A pastor and his wife have both been charged with fraud for allegedly creating a cryptocurrency, marketing it to Christian communities and using the proceeds to fund their “lavish lifestyle,” authorities say.
Eli Regalado, a pastor in Denver, Colorado, and his wife, Kaitlyn Regalado, “created, marketed, and sold a cryptocurrency known as ‘INDXcoin’ to members of the Christian community,” according to a statement from the Colorado Division of Securities. “INDXcoin was also offered through the Kingdom Wealth Exchange (KWE), an online cryptocurrency exchange that they created, controlled and operated.”
Colorado Securities Commissioner Tung Chan filed civil fraud charges Thursday against Eligio (Eli) and Kaitlyn Regalado of Denver, along with the companies used to allegedly sell the coins, for alleged violations of anti-fraud, licensing and Colorado registration. Securities Law.
“According to the complaint filed by the Colorado Attorney General’s Office, investigators from the Colorado Division of Securities found that from June 2022 to April 2023, INDXcoin raised nearly $3.2 million from more than 300 individuals,” they said the authorities. “The complaint alleges that Regalado targeted Christian communities in Denver and claimed that God told him directly that investors would get rich if they invested money in INDXcoin.”
Eli Regalado, a pastor, and his wife who created a cryptocurrency targeting Christian communities and using the money to fund their “lavish lifestyle” have been charged with fraud, Colorado authorities say. INDXcoin
The Colorado Division of Securities says the Regalados had no cryptocurrency experience, “which was clear when a third-party auditor’s report described their INDXcoin code as unsafe, insecure, and riddled with serious technical problems.”
The Regalados, however, continued to promote INDXcoin as a low-risk, high-profit investment when, according to the complaint against them, “INDXcoin was illiquid and virtually worthless” as their investors lost millions of dollars and Regalados dispelled investors. funds to support their “lavish lifestyle”.
“We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and peddled them extravagant promises of wealth when he sold them essentially worthless cryptocurrencies,” Commissioner Chan said. “New coins and exchanges are easy to create with open source code. We want to remind consumers to be very skeptical.”
The action, filed in Denver District Court, seeks preliminary and injunctive relief, compensatory damages for investors and constructive relief over the defendants’ property.
The investigation into Regalado’s dealings is currently ongoing, and authorities urge anyone who has invested with INDXCoin or any other Regalado entity to contact the Colorado Securities Division at dora_SecuritiesWebsite@state.co.us or 303-894-2320.