The Denver-based pastor, who runs an online-only church called Victorious Grace Church, allegedly sold worthless INDXcoin cryptocurrency, taking a large portion of the proceeds.
According to The Denver Post, citing a recently filed lawsuit, Eli Regalado — founder and founder of INDXcoin and Kingdom Wealth Exchange — is facing securities fraud charges.
The pastor allegedly defrauded online investors by promising them that purchasing a coin would give them a “miracle in a very short time.”
“Just take this word as gospel truth and put this word into practice, and don't worry about how you will get the money. I truly believe that you will see a miracle in a very short time.
Denver Pastor Eli Regalado
Using seductive speeches and statements, Regalado told his online listeners that purchasing INDXcoin was part of preparations to enter the “kingdom,” as he promised that by diving into the cryptocurrency project, they would “get more money” than ever before.
The exchange and cryptocurrency project shut down in November 2023, with investors wondering what happened.
In the lawsuit filed in Denver District Court, Tong Chan, the state securities commissioner, claimed that Regalados sold $3.4 million worth of “worthless” INDXcoins in 2022 and the first half of 2023.
At least $1.3 million of that amount, according to Chan, whose office subpoenaed the couple's bank records, went directly to the Regalados.
Chan believes the Regalados enticed devout Christians to make investments that would go to a good cause, such as helping orphans and widows, but the payments were returned to the church owners.
The couple allegedly used the money to make extravagant purchases such as a Range Rover, jewelry, high-end wallets, cosmetic dentistry, boat and snowmobile rentals, and home repairs.
In addition, they sent about $290,000 to the church account, which has no physical location.
Prior to the project's closure, INDXcoins were sold for $1.50 apiece, with payments sent via wire transfer to Grace Led Marketing's bank account or Eli Regalado's Venmo account.
According to the complaint, investors were told that each INDXcoin was worth at least $10 and that 30 million of those coins were in use, meaning the company should have had $300 million to back the coins.
After conducting investigations, state investigators discovered only $30,000.
The cryptocurrency was audited by Hacken, a cybersecurity firm, according to INDXcoin. The Regalados overlooked the fact that Hacken gave the project a “0/10” rating, as revealed by state investigators who had copies of Hacken’s audits.
