Pastor and His Partner Face Charges in a $3.2 Million Cryptocurrency Scam
In a shocking incident, Eli Regalado, an online pastor from Colorado, alongside his partner Kaitlin Regalado, faces fraud charges for their involvement in a cryptocurrency scam. The duo allegedly raised around $3.2 million from over 300 investors through a platform named Kingdom Wealth Exchange, predominantly targeting members of their online church, Victorious Grace Church. The Colorado Securities Commission has accused them of exploiting the trust of the Christian community, selling what is claimed to be INDXcoin.
Confessions and Controversy
In a nine-minute video on INDXcoin's official website, Eli Regalado admitted to the truth of the allegations. He confessed that he, along with his partner, scammed over $1.3 million from the members of their community, claiming divine guidance as the reason for their actions. Eli stated that 'the Lord' instructed him to promise his followers tenfold returns on their investments. However, these spiritual claims did not spare the Regalados from legal consequences.
An online pastor was charged in CO for a $1.3 million crypto scam. He's released a 9-minute-long video explaining that the Lord told him to sell a cryptocurrency with no clear exit", and spend some of the proceeds on "a home remodel the Lord told us to do".
— Molly White (@molly0xFFF) January 21, 2024
Here's a supercut. pic.twitter.com/scKpF8nyrT
Misuse of Funds for Personal Luxuries
Despite Regalado's claims of following divine orders, the lawsuit alleges the couple used the funds for personal luxuries. According to the Colorado Securities Commission, the couple spent lavishly on cosmetic dentistry, luxury handbags, snowmobiles, home renovations, and extravagant vacations. The lawsuit also states that a portion of the funds was used for a 'divine-backed' home remodeling.
The investigation revealed that the INDXcoin, marketed as a low-risk, high-reward investment, was, in fact, virtually worthless. Colorado Securities Commissioner Tung Chan emphasized the lack of experience the Regalados had in cryptocurrency, citing a third-party auditor's report that described INDXcoin's code as unsafe and riddled with technical problems. Despite these findings, the accused individuals continued to promote INDXcoin.
INDXcoin and Legal Ramifications
The Colorado Division of Securities' action against the Regalados seeks preliminary and injunctive relief, damages for investors, and constructive trust in the defendants' property. Furthermore, the Colorado Securities Commission has urged anyone who invested in INDXcoin or any other entities associated with the Regalados to contact them for support and guidance. The commission also offers tips on its website to help the public avoid becoming victims of securities fraud.
Public Reaction
In a YouTube podcast interview titled "Following God's Voice Into Crypto," Regalado shared his past, including serving prison time for car theft at 22. This revelation has added to the public's skepticism about his recent actions. The case has sparked conversation about the intersection of religion, trust, and financial schemes, raising questions about the responsibility and ethics of spiritual leaders in the digital age. The unfolding of this case continues to be closely watched, as it not only deals with financial fraud but also explores the exploitation of religious communities in modern financial scams.