The Denver Pastor Accused of Running a $3.2 Million Crypto Scam
A Denver-based pastor, Eli Regalado, who operates an online-only church called Victorious Grace Church, is facing securities fraud charges for allegedly running a crypto scam. The pastor is accused of selling worthless INDXcoin crypto and pocketing a significant portion of the proceeds.
The Promise of Miracles and Wealth in Crypto
Regalado allegedly defrauded online investors by promising them that purchasing INDXcoin would lead to miracles and immense wealth. He used sermons and enticing statements to convince his followers that buying the coin was part of their preparation for entering “the kingdom,” where they would have more money than ever before.
In a lawsuit filed in the Denver District Court, it is claimed that the Regalados sold $3.4 million worth of “valueless” INDXcoins in 2022 and the first half of 2023. State securities commissioner Tung Chan stated that at least $1.3 million went directly to the Regalados.
The Misuse of Funds
It is alleged that the couple used the funds obtained from investors to make extravagant purchases, including a Range Rover, jewelry, high-end purses, cosmetic dentistry, boat and snowmobile rentals, and house repairs. They also sent a significant amount of money to their church’s account.
Fake Valuations and Audit Omissions
Investors were told that each INDXcoin was worth at least $10, with 30 million coins in circulation, suggesting a total value of $300 million. However, state investigators discovered that only $30,000 existed. The Regalados also failed to disclose that cybersecurity firm Hacken had given the project a “0/10” rating in their audits.
Hot Take: Exploiting Faith for Personal Gain
This case highlights the unfortunate reality of individuals exploiting the trust and faith of others for personal gain. It serves as a reminder to always conduct thorough research and due diligence before investing in any cryptocurrency project. Beware of promises that sound too good to be true and rely on reputable sources for information and audits. Protect yourself from scams by staying informed and skeptical, even when they come from seemingly trustworthy individuals or organizations.
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