A Colorado pastor, who has launched a crypto venture after God allegedly told him, is now accused of pocketing $1.3 million from his followers.
Colorado Pastor Launches Crypto Venture After Receiving Signs From God
According to CNN, Denver pastor Eli Regalado announced in a YouTube video last April that he would start selling cryptocurrency after months of praying and receiving signs from God.
He said the collapse of Signature and Silvergate banks weeks earlier was a sign to explore other investment options beyond financial establishments. With claims of divine wisdom, he added that he was "setting the rails for God's wealth transfer," CNN reported.
Regalado and his wife, Kaitlyn Regalado, then later introduced a cryptocurrency named INDXcoin, marketing it to members of Victorious Grace Church and other Christian communities in Denver and selling it through the Kingdom Wealth Exchange, an online marketplace he established and operated.
In a civil complaint, Tung Chang, Securities Commissioner for Colorado, said the Regalados raised over $3.2 million from more than 300 investors.
The complaint noted that the sales pitches made by the couple were infused with prayer and Bible quotes, telling investors to have faith that their investment would result in "abundance" and "blessings."
Colorado Division of Securities Says INDXcoin Is 'Essentially Worthless'
However, the Colorado Division of Securities said INDXcoin was "essentially worthless." The Colorado state regulators noted that instead of delivering on promises of wealth, the couple used around $1.3 million of the investment funds for personal expenses, including a Range Rover, jewelry, extravagant vacations, home renovations, and cosmetic dentistry.
In a video statement posted on January 19, a few days after the civil charges were filed, the Colorado pastor confirmed the charges for pocketing $1.3 million. Regalado said the idea to use "a few hundred thousand dollars" in home remodeling came from the Lord, who "told us to do [it]."
A state spokesperson told CNN that the Colorado Division of Securities initiated an investigation after receiving complaints from an anonymous investor. Chan filed civil fraud charges last week against the couple for alleged violations of the state's Securities Act's anti-fraud, licensing, and registration provisions.
The complaint said INDXcoin was not backed by assets, making it a risky currency with no market interests beyond its platform. It added that the couple also confused investors by using technical terms and misled them into believing that the digital coins were valued between $10 and $12 despite being bought for $1.50 or, sometimes, given away.
"Regalado took advantage of the trust and faith of his own Christian community, and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies," Chan said in a statement.
"New coins and new exchanges are easy to create with open source code. We want to remind consumers to be very skeptical," she added.
Regalado recently expressed hope that a God's "miracle" would bail him out and his investors would be "able to receive [their] money back." A court hearing is set for Monday.
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