The Colorado pastor of an online church who allegedly embezzled $1.3 million in a cryptocurrency scam told his followers: video statement That the Lord told him to do it.
According to the Colorado Bureau of Securities, Eli Regalado and his wife pitched the INDX coin to Denver's Christian community, saying God had told them that people could become wealthy by investing. in a statement Thursday.
According to the securities department, INDXcoin has raised approximately $3.2 million. At least $1.3 million of that money went directly to the Regalados or was “used for their own personal benefit,” according to the complaint filed Tuesday in Denver County District Court.
Eli and Caitlin Regalado could not be reached for comment, but last week, Eli Regalado said in a video statement to his followers that the charges that they appropriated $1.3 million were “true.” Stated.
“Of $1.3 [million]$500,000 went to the IRS and hundreds of thousands of dollars went to renovations to the house that the Lord told us to do,” he said in the video.
The couple also allegedly spent investor funds on Range Rovers, luxury handbags, jewelry, au pairs, boat rentals and snowmobile adventures, according to the complaint.
The couple was charged with violating anti-fraud provisions under the Colorado Securities Act.
Colorado Securities Commissioner Tan Chan told NBC News that he has filed civil fraud charges after being contacted by people who lost money investing through INDX Coin.
“We allege that Mr. Regalado exploited the trust and faith of his Christian community and sold them essentially worthless virtual currencies with outlandish promises of wealth. “There are,” Chan said in a statement.
“Illiquid and virtually worthless”
According to the securities department, Regalado claimed that God told investors that they would become wealthy if they put their money into INDXcoin, promoting it as a low-risk, high-return investment pegged to the average value of the top 100 cryptocurrencies. did.
In reality, INDXcoin was “illiquid and virtually worthless,” the securities department said in a release. This cryptocurrency was only available on Kingdom Wealth Exchange, but Regalados has shut down. It's not sold anywhere anymore.
“We believed in the word of God and sold cryptocurrencies with no clear exit,” Regalado said in a video address Friday. “What we still believe is that God works miracles. God will work miracles in the financial field.”
In the comments on Regalado's video, dozens of people continue to assure him that God will “turn things around.”
faith-based marketing
Twenty years ago, when his faith led him to become a pastor, Regalado was 22 years old and in prison for “boosting a car,” he said on YouTube Live. podcast. He began preaching at the online-only Victorious Grace Church. There he and his wife are listed as his two only employees.
Regalado said divine inspiration inspired him to launch INDXcoin and Kingdom Wealth Exchange, despite having no experience with cryptocurrencies or exchanges.
“It was October last year. [20]21, that the Lord has brought me this cryptocurrency. He said, 'Please take this to my people for wealth transfer,''' Regalado said in a video update to INDXcoin followers in August 2022.
According to the complaint, Regalado promoted INDX Coin through presentations at his church and through presentations he found through other pastors. From June 2022 to April 2023, the cryptocurrency raised nearly $3.2 million through the sale of unregistered securities.
In a video on INDXcoin's YouTube channel, Regalado quotes a Bible verse and tells investors to expect “miracles” as they wait for “God's plan” to unfold.
Regalado also told investors that he would “tithe” and “sow seeds” to causes that benefit widows and orphans, but kept the money primarily in their own pockets, according to the complaint.
“They are particularly active in the Christian community, and there are a lot of references to the Bible and faith. He hides his appearance to get people to give him money,” said Chan, director of the Colorado Securities Bureau. Told. “It's really heartbreaking for the people who trusted him.”
Eli Regalado, his wife, and three of his companies are charged with securities fraud, unauthorized broker-dealer activity, sale of unregistered securities, and imposition of a constructive trust.
They are scheduled to appear in Denver District Court next week, according to court records.
Mr. Chan encourages others investing in INDXCoin to contact the Colorado Securities Department.
