Denver Pastor Facing Lawsuit Over 'Worthless' Cryptocurrency

A Pastor's Cryptocurrency Venture

Denver pastor Eli Regalado and his wife launched a cryptocurrency called INDXcoin after claiming they were led by God to explore alternative investment options.

They sold the cryptocurrency to members of their church and other Christian communities, and raised over $3.2 million from more than 300 investors.

Regalado promoted the investment opportunity by incorporating prayer and biblical quotes, promising abundance and blessings to investors.

Allegations of Misuse of Funds

However, Colorado state regulators assert that INDXcoin was essentially worthless and that the Regalados misused around $1.3 million of the investment funds.

Instead of generating wealth for investors, the money was used on luxury expenses such as a Range Rover, jewelry, dental work, vacations, and home renovations.

In a video statement, Eli Regalado admitted to the charges and justified the expenses as being directed by God.

Deceptive Practices and Lack of Transparency

The Colorado Division of Securities launched an investigation into the Regalados' cryptocurrency venture following a complaint from an anonymous investor.

They filed civil fraud charges against the couple, alleging violations of anti-fraud, licensing, and registration provisions.

The state claims that INDXcoin was not backed by assets, had no market value beyond its investors, and was deliberately misleadingly priced.

The Regalados also failed to explain the functioning of the INDXcoin market and misled investors about the value of the cryptocurrency.

Hope for Divine Intervention

Despite the allegations and the inability of investors to sell their INDXcoin, Eli Regalado maintains that divine intervention will rectify the situation.

He cited technical issues with the exchange technology and expressed belief in God's plan and the possibility of a miracle.

A court hearing is scheduled for next week to determine the outcome of the lawsuit.