Colorado pastor Admits Crypto Fraud, Saying “God Said”
Crypto News – The leader of an online church, Eli Regalado, now faces charges of embezzling $1.3 million through a cryptocurrency fraud scheme, but he has offered a unique defense – claiming that he was following divine guidance. Regalado and his wife, Kaitlyn, promoted their cryptocurrency, INDXcoin, primarily to Christian communities in Denver, Colorado, asserting that God had instructed them that investing in the currency would lead to wealth. This extraordinary revelation came to light as the Colorado Division of Securities issued a statement detailing the case.
The Regalados managed to raise a substantial sum, nearly $3.2 million, from over 300 individuals, with a significant portion of it, at least $1.3 million, being diverted for their personal use, according to a complaint filed in the Denver County District Court. The complaint further reveals that these funds were spent on luxury items such as a Range Rover, high-end handbags, jewelry, as well as on services like hiring an au pair, renting boats, and enjoying snowmobile adventures. Sky News‘s US partner, NBC News, extensively covered the alleged spending.
In a recent video statement posted on the INDXcoin community forum, Eli Regalado publicly acknowledged the charges against him, admitting, “The charges are that Kaitlyn and I pocketed £1.3 million, and I just want to… say that those charges are true.” He continued by explaining that out of the $1.3 million, approximately half a million dollars went to the IRS, while several hundred thousand dollars were utilized for a home renovation project, which he claimed was divinely guided.
Regalado went on to recount how, in 2021, he and his wife received a divine message to “walk away” from their previous business endeavors and venture into cryptocurrency. However, he asserted that the cryptocurrency ultimately turned out to be a scam, one they had not created. When faced with this dilemma, he sought guidance from a higher power, stating that he asked “the Lord” how to proceed. According to him, the divine response was that he should “build this the way it should be done.”
The pastor expressed his intention to present his side of the story in court, stating, “We’re going to go to court and we’re going to argue our case and say why we did it, and here’s all the journal entries leading up to this, but, yes, we’re in agreement, we did do this.” Regalado concluded his statement with unwavering faith, maintaining that he and his wife had followed the divine path, even if it meant selling a cryptocurrency without a clear exit strategy. He continued to believe that God would perform a financial miracle.
Eli Regalado serves as a pastor for the online-only Victorious Grace Church, where he and his wife are listed as the sole employees. Both of them now face charges of violating anti-fraud provisions under the Colorado Securities Act.
Colorado Securities Commissioner Tung Chan asserted that she filed these civil fraud charges after being approached by individuals who had invested in INDXcoin and subsequently suffered financial losses. She stated, “We allege that Mr. 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.”
The Colorado Securities Division further highlighted that INDXcoin was “illiquid and practically worthless,” directly contradicting the Regalados’ claims that it was a low-risk, high-profit investment. Moreover, the cryptocurrency was exclusively available on the Kingdom Wealth Exchange, a platform created and operated by the Regalados themselves, which has since been shut down, rendering the currency unsellable.
In a damning assessment, a third-party auditor characterized the INDXcoin code as “unsafe, unsecure, and riddled with serious technical problems,” as reported by the Securities Division.