A case of cryptocurrency fraud is causing a huge stir in Colorado, United States. Eli Regalado, a local pastor, and his wife Kaitlyn are charged with selling a cryptocurrency called INDXcoinwhich is now considered worthless.
The Colorado Securities Commission accuses the couple of misleading investors and using their money for personal expenses. The pastor spoke about the matter in a video sent to the currency forum and blamed God for the problems.
In the video, the pastor admitted that investors in the cryptocurrency managed by him and his wife currently have no value in withdrawing the investments made. He mentioned the failed launch of a cryptocurrency exchange and expressed his hopes in a divine miracle to resolve the situation.
“We launched an exchange, the exchange technology failed, things got worse and from then on we literally waited on the Lord for a miracle.”said the pastor.
Pastor and wife are accused of a million-dollar cryptocurrency scam
The Regalados, known for their blending of spirituality and investments, are accused of raising $3.4 million, about 16.7 million reais, by selling a “worthless” cryptocurrency.
In 2022, the pastor declared that the cryptocurrency INDXcoin had been divinely revealed to him. “Take this to my people for a wealth transfer”he said at the time, arguing that it was “taught by the Lord”.
The currency and the only brokerage that traded these assets, Kingdom Wealth Exchange, closed last November, leaving investors with no answers.
According to a lawsuit pending in U.S. District Court, the Regalados spent at least $1.3 million on personal expenses, including the purchase of a Range Rover and luxury jewelry, while also sending money to the church.
The indictment also states that the Regalados promised to help widows and orphans, but that the funds allocated for these purposes were primarily for their own benefit.
The INDXcoins tokens, which sold for $1.50 each, were promoted with a future value of $10, a claim now disputed in the lawsuit.
It is also alleged that the Regalados, despite being skilled marketers, lacked the necessary technical expertise, leading to catastrophic technological shortcomings in the cryptocurrency and exchange.
An audit conducted by Hacken, a cybersecurity firm, gave INDXcoin a rating of “zero out of 10,” according to the lawsuit.
Liquidity problems forced the closure of the Kingdom Wealth Exchange, culminating in its permanent closure in November when Eli Regalado admitted that he “Literally on the edge of poverty.”
In addition to securities fraud, the couple is accused of selling unlicensed investments and unregistered securities. The charges are civil and carry possible fines, but no jail time.
Last Wednesday, a judge ordered the bank accounts of the Regalados and their companies to be frozen for 14 days, and also required them to temporarily stop selling securities in Colorado.
Now that INDXcoin is no longer tradable, investors are finding it difficult to recoup their losses.
“The gentleman who sent it”
In a video published last Saturday (20), Pastor Eli Regalado responds to allegations of fraud. Unscripted and claiming that God spoke through him, the pastor attributes his actions and decisions to divine guidance, including spending investors’ money on personal property.
“I don’t read from a script… I asked the Lord what He wanted me to say, and He said, ‘Let me speak through you’”.
The pastor admits that the $1.3 million, part of the $3.4 million raised, was actually used by him and his wife Caitlin. “Half of that money went to the tax authorities and a significant amount went to a house renovation that the Lord told us to do.”he claimed.
Regalado describes INDXcoin as a response to divine guidance to leave his marketing company in 2021 and enter the world of cryptocurrencies.
He says the first cryptocurrency they got involved in turned out to be a fraud, and claims God told him to ‘building as it should’. This involvement led to the creation of INDXcoin.
“The Lord said: trust me”says Regalado when explaining the launch of INDXcoin, emphasizing that he has followed this divine guidance throughout the project.
He further claims that he was constantly under guidance from God that he would provide, stating that they and the investors believed that God was not done with the INDXcoin project.
“We sell cryptocurrency because we believe in God”, it says. He acknowledges that the plaintiff has grounds to claim that they sold the worthless cryptocurrency.
In conclusion, Regalado maintains a tone of hope, calling on his faith in God to turn the situation around. “I don’t know how God will change this, but I know the God I serve.”he states.
Finally, he encouraged his followers to continue to believe in the INDXcoin project, concluding that all promises in Christ are “yes and amen.”
“God did not finish this project. Just believe and receive all that God has said about this project, despite all these promises in Christ. Amen.” – he concluded.
Interestingly, comments on the video post show significant support from the community, with many praising the pastor for admitting the problems.
He responded by stating that both he and his supporters believe in the power of a financial miracle for INDXcoin.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
