According to Cointelegraph: In a remarkable turn of events in the cryptocurrency world, a Colorado-based online pastor, Eli Regalado, admitted to fraudulent charges after selling a "worthless" cryptocurrency for more than $3 million to his followers. The pastor defended his actions, claiming divine intervention, stating that "the Lord" urged him to provide his followers with a tenfold return on their investments.
Eli Regalado and his accomplice Kaitlin Regalado were officially charged with fraud, related to the issue and marketing of a bogus digital coin named "INDXcoin," by the Colorado Securities Commission on January 18. The charges centered around the duo allegedly embezzling $1.3 million.
According to Colorado Securities Commissioner, Tung Chan, the couple exploited the faith and trust of their Christian community through their dubious promises of wealth while selling the virtually worthless cryptocurrencies. The fraudulent scheme allegedly targeted Christian communities in Denver, with Regalado claiming divine directive assuring wealth to investors in INDXcoin.
Between June 2022 and April 2023, the Regalados' questionable venture allegedly amassed nearly $3.2 million from over 300 investors, primarily via a platform called the Kingdom Wealth Exchange. Remarkably, a significant portion investment was raised from the virtual Victorious Grace Church congregation, where Regalado serves as pastor.
Of the total capital raised, Regalado claimed that half was paid as taxes to the IRS, and a substantial portion went towards a "divine-backed" home remodeling project.
Despite turning off the Kingdom Wealth Exchange in November last year, citing inadequate finances for maintaining internal servers, the lawsuit by Commissioner Chan alleges extensive misuse of the funds. The couple is accused of squandering most of the $1.3 million on cosmetic dentistry, high-end accessories, home renovations, snowmobiles, and luxurious vacations.
While the Regalados await their day in court, this case serves as a stark reminder and warning of potential risks and frauds within the loosely regulated world of cryptocurrencies.
