The Pastor Accused of Illegally Profiting from Cryptocurrency Sales
The Colorado Securities regulator has charged Reverend Eli Regalado, the creator of the INDX coin and pastor of the Victorious Grace Church, with illegally pocketing $1.3 million from the sale of his cryptocurrency. It is alleged that Regalado sold “worthless” INDX coins for $3.4 million between 2022 and the first half of 2023. Investors were not able to recoup their investments, leading to the securities commissioner filing a lawsuit against Regalado on January 16.
Fraudulent Actions and Lavish Spending Leads to Lawsuit
According to the Denver Post, Regalado spent the $1.3 million he earned from the token sales on luxury items such as a Range Rover, jewelry, handbags, cosmetic dentistry, and boat rentals. The lawsuit alleges that Regalado used his religious position to persuade followers to invest in the cryptocurrency. In a sermon, Regalado claimed that the Lord had instructed him to create the now-defunct crypto asset, saying, “Take this to my people for a wealth transfer.”
The INDX Coins and Their Technological Issues
Furthermore, Regalado encouraged his followers to hold on to their INDX coins, claiming that it was the Lord’s will. However, the lawsuit filed by the securities commissioner states that the INDX coins were falsely marketed as being worth at least $10 each, totaling $300 million for the 30 million coins. The lawsuit also highlighted the cryptocurrency’s severe technological deficiencies and the failures of the marketplace where INDX coins were traded.
Legal Action and Account Closures
In response to the lawsuit, Judge David Goldberg ordered the closure of the Regalados’ bank accounts and associated company accounts for 14 days. Additionally, the judge prohibited the Regalados from selling securities within Colorado.
Hot Take: Pastor Allegedly Uses Religion to Deceive Investors
A pastor’s role in society is traditionally that of guidance and moral leadership. However, Reverend Eli Regalado stands accused of using his position to exploit and deceive investors. By claiming that God instructed him to create a cryptocurrency, Regalado allegedly convinced followers to invest in the INDX coin, resulting in significant financial losses. The case highlights the importance of conducting thorough research and due diligence when considering investments, particularly in the volatile world of cryptocurrencies.
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