Online Pastor and Wife Allegedly Sold $3.2M in Worthless Crypto: Civil Fraud Charges Filed
An online pastor and his wife are facing civil fraud charges in Colorado for selling some $3.2 million in a worthless cryptocurrency they created called “INDXcoin” to hundreds of Christians while claiming that God said the investment would make them wealthy.
The Colorado Securities Commissioner has filed charges against Eligio “Eli” and Kaitlyn Regalado of Denver, INDXcoin, LLC, Kingdom Wealth Exchange LLC, and other parties connected to the sales of the cryptocurrency for alleged violations of the anti-fraud, licensing, and registration provisions of the Colorado Securities Act.
$3.2M Raised from Christian Investors: Complaint Alleges Violations
The complaint, filed by the Colorado Attorney General’s Office, states that investigators found that from June 2022 to April 2023, INDXcoin raised nearly $3.2 million from more than 300 individuals who were recruited as investors from Christian communities in Denver. The alleged violations include anti-fraud, licensing, and registration provisions of the Colorado Securities Act.
Pastor Claims God Spoke to Him About the Cryptocurrency
In August 2022, Reverend Eli Regalado reportedly told his followers online that God spoke to him about the cryptocurrency and said, “Take this to my people for a wealth transfer.” He continued to promote the INDXcoin as a low-risk, high-profit investment even after INDXcoin and Kingdom Wealth Exchange were shut down on November 1 of that year.
Investors Told INDXcoins Valued at $10 Each: Reality Turns Out Different
Prior to the shutdown, investors were sold INDXcoins for $1.50 each, with the promise that each coin was worth at least $10. The lawsuit reveals that although there were 30 million coins in circulation, there was only $30,000 to back them. Investigators found serious technical problems with the couple’s INDXcoin code, and a third-party auditor’s report described it as unsafe and unsecure.
Lavish Lifestyle and Alleged Dissipation of Investor Funds
According to Colorado Securities Commissioner Tung Chan, Reverend Regalado and his wife had no experience in cryptocurrency and allegedly dissipated investor funds to support their lavish lifestyle. The couple’s bank records indicate splurges on items such as a Range Rover, jewelry, luxury handbags, cosmetic dentistry, boat rentals, and home renovations. The release from Chan’s office describes INDXcoin as illiquid and practically worthless, causing investors to lose millions.
We want to remind consumers to be very skeptical. New coins and new exchanges are easy to create with open-source code.
Analyst comment
This news is negative. The pastor and his wife are facing civil fraud charges for allegedly selling a worthless cryptocurrency to Christian investors. The market is likely to be negatively impacted as trust in cryptocurrencies could be further eroded. Investors may become more skeptical and cautious in their investments, especially in new coins and exchanges.
