Eli Regalado, the Denver pastor who was sued along with his wife by the Colorado Securities Commission for selling millions of dollars in “worthless” INDXcoin cryptocurrency, responded to the allegations in the lawsuit in a video uploaded to the INDXcoin community forum.
In the video, Pastor Eli Regalado admits that investors in the cryptocurrency run by him and his wife Caitlin currently have no way to cash out the money they invested.
“We launched the exchange, the exchange technology failed, things went downhill, and from that point on, we were literally waiting for God to perform a miracle,” Regalado says.
Both Regalados claim to have been ordained pastors with Destiny Churches and Ministries International, according to a post on the online-only Facebook page of Victorious Grace Church. Destiny Churches promoted INDXcoin on her private Facebook page to her 1,000 followers.
The Regalados were accused of siphoning off INDXcoin funds in order to spend lavishly on a Range Rover, jewelry, luxury handbags and more, according to BusinessDen, while telling investors that the money would go to causes helping widows and orphans.
“The charges are that Caitlyn and I were paid $1.3 million. These charges are true,” Regalado says in the video. “Of the $1.3, half a million dollars went to the IRS, and a few hundred thousand dollars went to the home remodeling that the Lord asked us to do.”
Regalado says he hopes a divine miracle will bring healing to investors. “We sold cryptocurrency with no clear way out,” Regalado says, “so prosecutors should take that and say, ‘These people willingly sold cryptocurrency without a clear way out’… We did that.” “What we pray for, and what we believe so far, is that God will… perform a miracle in the financial sector, and He will bring a miracle to INDXcoin. Whoever comes for the money will be able to get the money back.”
The comments under the post are largely supportive. One commenter says: “You are so brave to post this video… God is leading us all and God will get all the glory.” “We agree about 10 percent,” Regalado replied.
Judge David Goldberg froze the bank accounts of the Regalados and related companies at the request of state regulators following the civil complaint. Regalados is scheduled to appear in Colorado District Court on Jan. 29 for a preliminary hearing.
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