Pastor Charged With Cryptocurrency Fraud Said God Told Him to Do It
A Denver pastor and his wife are facing civil charges for creating and selling a worthless cryptocurrency and allegedly pocketing over $1 million.
Eligio Regalado, the Denver Pastor Accused of Creating Worthless Cryptocurrency
Eligio Regalado, a pastor in Denver, and his wife, Kaitlyn Regalado, have been charged with civil fraud for marketing and selling a cryptocurrency called INDXcoin. Prosecutors claim that the couple targeted Christians in Denver and raised around $3.2 million from over 300 people. However, the cryptocurrency was deemed "practically worthless" and the couple allegedly used the money for personal gain.
The Colorado Attorney General's Office filed a civil complaint against the Regalados, accusing them of creating and selling a cryptocurrency that had no clear exit strategy. According to the complaint, the couple had no prior experience in cryptocurrency exchanges but still marketed and sold the INDXcoin through their own exchange. This prompted an investigation by the Colorado Division of Securities.
The Regalados have not responded to the charges and it is unknown if they have legal representation. In a video addressing the complaint, Eligio Regalado claimed that he and his wife acted on the guidance of God and believed that a miracle would happen in the financial sector to help investors recover their funds.
Prosecutors Alleged Exploitation of Trust and Faith
Commissioner Tung Chan of the Colorado Division of Securities criticized Eligio Regalado for taking advantage of the trust and faith of his Christian community. Prosecutors allege that Regalado made false promises of wealth and sold essentially worthless cryptocurrencies to his followers. The Colorado Attorney General's Office is seeking damages to restore the losses suffered by investors.
The Victorious Grace Church, led by Regalado, has been taken down following the charges. Regalado claimed to have received a divine message in 2021, instructing him and his wife to start a "new thing." The couple used a significant portion of the raised funds for personal expenses, including a home remodel, while a fraction was paid to the Internal Revenue Service.
Despite the turmoil surrounding the cryptocurrency venture, Eligio Regalado expressed hope that God would intervene and help investors retrieve some of their money. The ongoing litigation will determine the outcome of the case.
The Investigation and Pursuit for Restitution
The Colorado Division of Securities launched an investigation into the Regalados' INDXcoin scheme and the alleged fraud. Prosecutors aim to secure damages to compensate investors who purchased the worthless cryptocurrency. The Colorado Attorney General's Office declined to comment on the ongoing litigation.
Eligio Regalado acknowledged in his video response to the charges that the cryptocurrency venture had encountered significant difficulties and admitted his lack of expertise in the field. He presented two possibilities: either misinterpreting God's message or believing that God still has plans for the project.
Investors who fell victim to the fraud are hopeful that justice will be served and that they will be able to recover at least a portion of their investment. The Regalados plan to put forth a defense in hopes of achieving this outcome.
