Bitcoin
Pastor Created ‘Valueless’ Cryptocurrency Targeting Christians to Support ‘Luxury Lifestyle’: Authorities
He allegedly claimed that God told him directly that the investors would get rich.
January 23, 2024, 8:25 am ET
• 5 minutes of reading
A pastor and his wife have been charged with fraud for allegedly creating a cryptocurrency, pitching it to Christian communities and using the profits to fund their “lavish lifestyle,” authorities say.
Eli Regalado, a pastor in Denver, Colorado, and his wife, Kaitlyn Regalado, “created, marketed and sold a cryptocurrency known as ‘INDXcoin’ to members of the Christian community,” according to a statement from the Colorado Division of Securities. “INDXcoin was also offered through Kingdom Wealth Exchange (KWE), an online cryptocurrency exchange that they created, controlled and operated.”
Colorado Securities Commissioner Tung Chan filed civil fraud charges Thursday against Eligio (Eli) and Kaitlyn Regalado of Denver, along with the companies they used to allegedly sell the coins, for alleged violations of anti-fraud provisions. , Colorado licensing and registration. Securities Law.
“According to the complaint filed by the Colorado Attorney General’s Office, Colorado Division of Securities investigators found that from June 2022 to April 2023, INDXcoin raised nearly $3.2 million from more than 300 individuals,” authorities said. “The complaint alleges that Regalado targeted Christian communities in Denver and alleged that God told him directly that investors would get rich if they put money into INDXcoin.”
Eli Regalado, a pastor, and his wife, who created a cryptocurrency targeting Christian communities and using the money to finance their “lavish lifestyle,” have been charged with fraud, Colorado authorities say. INDXcoin
The Colorado Division of Securities claims that the Regalados had no experience in cryptocurrency “which became clear when a third-party auditor’s report allegedly described their INDXcoin code as insecure, insecure and rife with serious technical problems.”
The Regalados, however, continued to promote INDXcoin as a low-risk, high-profit investment when, according to the complaint against them, “INDXcoin was illiquid and virtually worthless” as their investors lost millions of dollars and the Regalados squandered investment funds to support his “luxurious lifestyle.”
“We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and sold them bizarre promises of wealth when he sold them essentially worthless cryptocurrencies,” Commissioner Chan said. “New coins and new exchanges are easy to create with open source code. We want to remind consumers to be very skeptical.”
The lawsuit, filed in Denver District Court, seeks preliminary and injunctive relief, compensation to investors and that a constructive trust be placed on the Defendants’ property.
The investigation into Regalado’s trading is currently ongoing and authorities are asking anyone who has invested in INDXCoin or any of the other Regalado entities to contact the Colorado Division of Securities at dora_SecuritiesWebsite@state.co .us or 303-894-2320.