Pastor Blames God for $1.3M Crypto Scam

A Colorado-based online pastor, Eli Regalado, is now facing fraud charges related to selling a cryptocurrency deemed "worthless."

The charges were brought forth after Regalado and his partner, Kaitlin Regalado, allegedly issued and marketed a sham token, INDXcoin, promising extravagant returns to their followers. In a peculiar nine-minute video posted on INDXcoin's official website, Regalado confirmed the veracity of the accusations.

Allegations Against Regalado Unveiled

The Colorado Securities Commission, which levied the charges, asserts that Regalado capitalized on the trust within his Christian community.

According to NBC News, he allegedly made audacious promises of wealth, asserting that God himself had ordained the success of INDXcoin investments. According to Tung Chan, Colorado Securities Commissioner, the complaint contends that Regalado specifically targeted Christian communities in Denver.

From June 2022 to April 2023, INDXcoin reportedly raised approximately $3.2 million from more than 300 investors through the Kingdom Wealth Exchange platform. Most funds originated from the Victorious Grace Church, an online-only church where Regalado pastors.

Unveiling Financial Mismanagement

Regalado disclosed that half of the $3 million raised went to the Internal Revenue Service for taxes, and a substantial sum was allocated to divine-backed home remodeling.

According to Coin Telegraph, the Kingdom Wealth Exchange ceased operations on Nov. 1, 2023, with Regalado citing insufficient finances to sustain internal servers. He conveyed that he and his partner were teetering on the brink of poverty.

Despite this admission, the lawsuit filed by Commissioner Chan alleges that the pair spent the majority of a $1.3 million sum on indulgences such as cosmetic dentistry, luxury handbags, snowmobiles, home renovations, and extravagant vacations.

In a perplexing twist, Regalado urged INDXcoin holders to refrain from selling the token, citing divine guidance against being driven by material wealth. The unfolding legal battle illuminates the alleged financial mismanagement by the online pastor and his partner, underscoring the need for vigilance within cryptocurrency communities to prevent potential scams.

Photo by: Ben White/Unsplash