A Denver Pastor Allegedly Defrauds Investors of $3 Million in Cryptocurrency Scheme
A strange case involving cryptocurrencies has recently come to light in Colorado, where a Denver-based online pastor is now facing legal consequences for allegedly defrauding hundreds of investors. The pastor, Eli Regalado, is accused of scamming investors out of over $3 million and personally pocketing $1.3 million.
TLDR
- Pastor Eli Regalado sold over $3 million worth of a cryptocurrency called INDXcoin to followers of his online church, promising them 10x returns. He has now admitted the charges against him are true.
- Regalado claims God told him to launch INDXcoin and give his followers wealth through it. Half the $1.3 million he and his partner withdrew allegedly went to taxes and home renovations ordered by God.
- After the cryptocurrency exchange Regalado launched failed in November 2022, investors had no way to cash out their now worthless INDXcoin. Regalado says he is still believing God will perform a “miracle” so investors can get their money back.
- Colorado securities regulators allege Regalado targeted Christian communities and spent the majority of funds raised on luxury items like cars, vacations, purses and cosmetic dentistry for himself and his partner.
- Over 300 investors put approximately $3.2 million total into INDXcoin through Regalado’s Kingdom Wealth Exchange platform before he halted operations in November 2022.
In a video statement, Regalado admitted that the charges against him and his partner are true but maintained that his actions were directed by God. He is the founder of INDXcoin and operated the Kingdom Wealth Exchange platform through which he sold the cryptocurrency. Between June 2022 and April 2023, Regalado raised nearly $3.2 million by selling INDXcoin to his congregation, most of whom were members of his online church.
According to Colorado Securities Commissioner Tung Chan, the majority of the funds were used by Regalado and his partner to enrich themselves. They spent money on luxury cars, vacations, jewelry, dental work, and home remodeling. Regalado claimed that he withdrew $1.3 million, with half going towards taxes and the rest used for home renovations as instructed by God.
Regalado shut down both INDXcoin and the Kingdom Wealth Exchange in November 2022, leaving investors with essentially worthless assets. He cited issues with exchange software and lack of finances as reasons for the closure, but investigators believe it was an attempt to cover his tracks as scrutiny increased. Cyber security auditors gave INDXcoin their lowest possible grade of “0/10,” despite Regalado promoting positive assessments to boost the token’s legitimacy.
Regalado remains steadfast in his belief that God will intervene and restore the financial well-being of his followers. However, regulators view his schemes as fraudulent and accuse him of taking advantage of trust within the Christian community. The pastor’s bank accounts have been frozen by court order, and he is scheduled for a hearing on January 29th to address the alleged securities law violations.
Hot Take: Pastor’s Cryptocurrency Scheme Highlights Dark Side of Crypto
A Denver-based online pastor is facing legal consequences after allegedly defrauding investors of over $3 million through a cryptocurrency scheme. Pastor Eli Regalado sold a worthless cryptocurrency called INDXcoin to his congregation, promising them significant returns. He admitted to using the funds for personal gain but claims he was following God’s orders.
After Regalado’s cryptocurrency exchange failed, investors were left with worthless assets. Regalado still believes that a “divine miracle” will help investors recover their money. However, regulators argue that he targeted Christian communities and spent the funds on luxury items. The pastor’s bank accounts have been frozen, and he is due in court to face securities law violations.
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