DENVER — A Colorado pastor of an online church accused of defrauding investors out of more than $3.2 million through a cryptocurrency market he ran with his wife said “God” helped him organize the project.
The Colorado Securities Commissioner has filed civil fraud charges against Eli Regalado and his wife, Kaitlyn Regalado. He said the Denver couple targeted the Christian community and told their followers that God would make them rich if they invested in a cryptocurrency he created called INDXcoin.
Investigators with the Colorado Division of Securities found that from June 2022 to April 2023, INDXcoin collected about $3.2 million from more than 300 people who invested in the “illiquid” and “essentially worthless” currency, according to the complaint filed on January 16.
Investigators said the Regalados, who ran a cryptocurrency market called the Kingdom Wealth Exchange, used at least $1.3 million of that money to support a lavish lifestyle that included tens of thousands of dollars spent on vacations, jewelry, luxury handbags and dentistry. Cosmetics, clothing and accessories. Home renovations. The two, who closed the stock exchange on November 1, are also accused of using some of the money to finance the purchase of a Range Rover.
> The video above was originally broadcast on January 18: Pastor and wife face fraud charges after being accused of selling millions in cryptocurrency
Eli Regalado did not respond to an email seeking comment on Tuesday, but he said in a video statement to his followers last week that the accusations against him and his wife of stealing money were “true.”
He said in the video: “Out of the $1.3 million, half a million dollars went to the IRS, and a few hundred thousand dollars went to remodeling the house that the Lord commanded us to do,” indicating that God appeared to him. In a dream he gave him advice on how to run a cryptocurrency exchange.
He added: “What we are praying for, and what we believe so far, is that God will perform a miracle. God will perform a miracle in the financial sector. He will bring a miracle to INDXcoin. “He comes for the money from the refund.”
The church, of which the Regalados are the only employees, is operated out of the couple's home, recreational vehicle and vacation destinations, according to investigators.
Investigators said the Regalados' presentations to fellow pastors and evangelical Christians to promote INDXcoin were dominated by prayers and quotes from the Bible that encouraged potential investors to believe the cryptocurrency would lead to “abundance” and “blessings.”
In an August 2022 update video to investors and followers, Eli Regalado said: “God brought me this cryptocurrency. He said: Take this to my people and transfer the money. This has been confirmed a hundred times since then.
The couple also told investors that they would “pay tithes” and “farm” to causes that helped widows and orphans, “but the payments made to the ‘widows and orphans’ were primarily to benefit the Regalados,” according to the complaint.
The Regalados, who have no prior experience selling cryptocurrencies, 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.
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