Charges have been brought against a Colorado pastor and his spouse for allegedly defrauding hundreds of nearby Christians in a multimillion dollar cryptocurrency scam.
Eli Regalado, a pastor, and his spouse Kaitlyn are accused by prosecutors of raising money through the sale of cryptocurrency that is “practically worthless.”
According to prosecutors, the Regalados profited at least $1.3 million from the purported scheme between June 2022 and April 2023.
According to court documents, Mr. Regalado claimed that God had inspired his plan.
According to the complaint, the pastor claimed that “God told him directly that investors would become wealthy” by purchasing INDXcoin, a cryptocurrency developed, promoted, and sold by the Regalados.
Christians in the Denver area were able to purchase INDXcoin via the Regalados’ online cryptocurrency exchange, Kingdom Wealth Exchange.
According to the complaint, the couple “had no experience in cryptocurrency,” and INDXcoin was deemed “unsafe, unsecure, and riddled with technical problems” by a third-party auditor.
It stated, “The Regalados allegedly persisted in endorsing the INDXcoin as a low-risk, high-profit investment despite that report.”
“The INDXcoin was, in fact, illiquid and essentially worthless,” and the couple utilized the money for “their extravagant lifestyle.”
According to officials, this included a Range Rover, opulent handbags, jewelry, boat rentals, and snowmobile excursions.
Tung Chan, the Commissioner of Colorado Securities, has brought civil fraud charges against individuals who violated the Colorado Securities Act’s anti-fraud provisions.
She claimed that after receiving several complaints from investors in INDXcoin who had lost money, her department was notified.
In a video statement that was made public on Friday, Mr. Relagado responded to the accusations.
“Colorado is claiming it is worthless because there is no exit for those who have purchased,” he stated, recognizing that those who have attempted to withdraw their cryptocurrency investments have been unsuccessful.
“We started a conversation. The technology for exchange was unsuccessful. After things took a turn for the worse, we have been figuratively waiting on the Lord for a miracle.”
The pastor acknowledged the accuracy of the claim that Mr. Relagado and his spouse received $1.3 million.
However, he added, “of that $1.3 million, half went to the IRS, and the remaining $200,000 went toward a home remodel that the Lord directed us to do.”
“Prayers going up” and “hang in there, stay strong” were among the many encouraging remarks made by viewers in the video’s comments section.
For comment, the Regalados have been contacted by the BBC.
Prosecutors in Colorado have requested in the criminal complaint damages for investors, preliminary and injunctive relief, and the creation of a constructive trust over the Relagados’ property.
They have an appearance scheduled for next week in Denver District Court.