A Colorado pastor of an online church is challenging allegations that he and his wife defrauded parishioners. The couple allegedly defrauded investors of millions of dollars through a cryptocurrency marketplace deemed “essentially worthless” by state securities regulators.
Consequently, the Colorado Securities Commissioner (CSC) Tung Chan filed civil fraud charges against the couple, Eligo and Kaitlyn Regalado. The complaint accuses the Regalados of targeting members of the Christian community, telling them that God will make them rich.
It also alleges they enriched themselves by promoting a cryptocurrency token that the Denver couple launched called the INDXcoin. Furthermore, the complaint claims the couple sold the “illiquid and practically worthless” tokens from June 2022 to April 2023.
Chan said that they sold it through a cryptocurrency exchange they created called Kingdom Wealth Exchange. The commissioner further alleged that the sales supported the couple’s “lavish lifestyle.” Investigators said the Regalados used at least $1.3 million of those funds to support their lifestyle.
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According to the investigators, their lifestyle included tens of thousands of dollars spent on vacations. The couple also spent on jewelry, luxury handbags, cosmetic dentistry, clothes, and home renovations. In addition, Denver authorities claim they spent some money on purchasing a Range Rover.
However, the couple shut down the exchange on November 1, 2023. “Mr. Regalado took advantage of the trust and faith of his Christian community,” Chan said. “And he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies.”
Following the fraud charges, Regalado released a video acknowledging the allegations. In a nine-minute-long video, he said the allegations that he made $1.3 million from investors “are true.” “We took God at His word and sold a cryptocurrency with no clear exit,” Regalado said in the video.
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“Out of that $1.3 (million), half a million dollars went to the IRS,” he said in the video. “And a few hundred thousand dollars went to a home remodel that the Lord told us to do.” Also, Regalado said God appeared to him in a dream and advised him on how to run the cryptocurrency exchange.
In addition, he said he got divine instructions to abandon his former business to take over INDXcoin. “What we’re praying for, and still believing, is that God is going to do a miracle,” Regalado added. “God is going to work a miracle in the financial sector. He’s going to bring a miracle into INDXcoin.”
In addition, the online-only church pastor said he believes everyone will get their money back. “Everyone that has come in for money is going to be able to receive money back,” said Regalado. According to reports, the couple are the only employees in their church.
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Therefore, investigators say they operate it from their house, recreational vehicle, and vacation destinations. Furthermore, investigators said the Regalados dominated their presentations of INDXcoin to fellow pastors and evangelical Christians with prayers and quotes.
Hence, they believe the prayers encouraged potential investors to think the cryptocurrency would lead to “abundance” and “blessings.” According to the CSC, the Regalados had no previous experience selling cryptocurrency.
As a result, they are facing charges of violating the anti-fraud, licensing, and registration provisions of the Colorado Securities Act. Nonetheless, Regalado, in his video, said he would go to court to address the allegations against him and his wife. “God is not done with the INDX coin,” he said.
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