Investigators charged the couple with violating Colorado's fraud, licensing and registration laws. They argued that while cryptocurrencies were promoted as “low-risk, high-return investments,” they were in fact “illiquid and virtually useless.” Cryptocurrency can usually be converted into cash or other currencies through digital platforms or exchanges.
“The Lord said, 'I want you to build this,'” Regalado said. “We believed in God's word and sold cryptocurrencies with no clear exit.”
“Mr. Regalado exploited the trust and faith of his Christian community and sold them essentially worthless cryptocurrencies with promises of outlandish riches,” Colorado Securities Director Tan Chan said in a statement. “He claims he sold it to him,” he said in a statement.
The complaint alleges that investors lost millions of dollars, but the Regalados used the funds to support their “lavish lifestyle.” The couple sold digital assets to more than 300 investors between June 2022 and April 2023, the statement added.
inside video messageRegalado acknowledged that the couple earned $1.3 million from selling cryptocurrencies, of which they spent “several hundred thousand dollars” on “home renovations that the Lord has called us to do.”
“I misheard God, and so did all of you who came praying. Or two, God is not finished with this project yet,” Regalado said.
Regalado said he was inspired to sell INDXcoin even though he had no prior experience in cryptocurrency trading. “God's job is to do new things and open seals. And He told us to do this.”
“I said: Lord, I don't want to do that. I don't know how to do it. I don't have experience in this industry. I don't know what I'm doing. I don't want to get involved in something. I don’t want to.”
According to Regalado, investors who purchased INDXcoin were subsequently unable to convert the cryptocurrency into cash due to a technical glitch. “We launched an exchange. The exchange technology failed. Things went downhill,” the pastor said. “I know this is terrible.”
Posted in November Regalado announced that crypto networks and exchanges would remain offline “for the foreseeable future,” saying the failure had taken a toll on his mental health. He suggested investors “stop being controlled by mammon” and “eliminate all negative talk from the community”, saying he was being flooded with negative comments. expressed dissatisfaction.
A statement from the Colorado Commissioner of Securities said the Regalados had “no experience with cryptocurrencies,” which led to “a third-party auditor's report confirming that their INDX Coin code was not secure.” It was revealed that the system was described as unsafe and had many serious technical problems.''
“With open source code, it's easy to create new coins and new exchanges. We want to remind consumers to be very skeptical,” Chan said.
