A Colorado pastor, Eli Regalado, and his wife, Kaitlyn Regalado, find themselves in hot water as they face allegations of orchestrating a $3 million crypto fraud scheme. The judge overseeing the case has now decided to extend the freeze on their accounts, preventing any further sale of cryptocurrency in the state.
Unraveling the $3 Million Crypto Fraud
Just a little over a week ago, the Colorado Division of Securities charged Pastor Eli Regalado and his wife with fraud, revealing that the couple had managed to pocket $1.3 million worth of crypto. The duo had launched their own cryptocurrency, INDXcoin, using the Kingdom Wealth Exchange, a faith-based crypto platform they had created.
“Regalado targeted Christian communities in Denver, claiming that God assured him investors would prosper by putting money into INDXcoin,” states a press release from the Colorado Division of Securities.
The Role of INDXcoin in the Crypto Scheme
In total, the Regalados successfully raised over $3.2 million from more than 300 individuals to fuel their deceptive scheme. According to prosecutors mentioned in the Denver Post, the couple used a significant portion of the funds for personal expenses, including a Range Rover, home renovations, and cosmetic dentistry.
Despite an auditor’s report labeling INDXcoin as “unsafe, unsecure, and riddled with serious technical problems,” with a dismal rating of “zero out of 10,” the Regalados allegedly continued promoting it as a low-risk, high-profit investment.
“God is not done with INDXcoin”
In a now-deleted video from INDXcoin’s website, Eli Regalado seemingly confessed to the charges, admitting, “So the charges are that Kaitlyn and I pocketed $1.3 million, and I just want to come out and say that those charges are true.” He went on to claim that a portion of the money went to the IRS, and the rest funded home renovations guided by divine inspiration.
“This case is a sad one for me,” expressed Denver District Court Judge David Goldberg. “It’s one of the more egregious cases I have seen where someone, in the name of faith and God, preyed upon his congregants.” The Regalados were notably absent during Monday’s hearing, adding another layer of complexity to this unfortunate situation.