Pastor Allegedly Scams Over $3M From His Followers In Cryptocurrency Scheme

January 30, 2024
Eli Regalado, an online pastor with Victorious Grace Church in Colorado, finds himself entangled in civil fraud charges, alongside his wife, Kaitlyn Regalado.
The Washington Post reported that Eli Regalado, an online pastor and self-proclaimed prophet associated with Victorious Grace Church in Colorado, is entangled in civil fraud charges alongside his wife, Kaitlyn Regalado. The charges, brought forth by Colorado’s Securities Commissioner, assert that the couple exploited their ministry to defraud over 300 investors of $3.2 million through their cryptocurrency venture, INDXcoin.
The Regalados allegedly intertwined biblical references to market their unregistered securities, enticing investors with promises of “abundance” and “blessings.” The complaint reveals a scheme where the couple failed to disclose their lack of licensing to sell securities, their dearth of crypto experience, and critical technological deficiencies in their cryptocurrency, exclusively tradable on their platform, Kingdom Wealth Exchange.
“The Lord said: I want you to build this,” Regalado said. “We took God at his word and sold a cryptocurrency with no clear exit.”
The accusations have sent shockwaves through the community, prompting former employees and acquaintances to share insights into pastor Regalado’s complex journey. From a troubled past marked by criminal activities like car theft and assault, to a professed transformation after finding faith in prison, Regalado built a successful marketing agency in 2013, raising funds for Kickstarter projects. Despite claims of associations with Apple co-founder Steve Wozniak and Wikipedia creator Jimmy Wales, these assertions have been called into question.
Regalado’s life took a spiritual turn as he claimed to receive divine messages guiding his business decisions. His company, once thriving in crowdfunding, shifted focus to a Christian T-shirt business and later to the creation of a cryptocurrency, INDXcoin. The crowdfunding successes turned into an alleged venture of deceit, with the Regalados purportedly misappropriating funds for personal luxuries, culminating in their current legal predicament.
“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,” Colorado Securities Commissioner Tung Chan said in a statement.
The couple’s narrative took a peculiar turn when Eli Regalado, in a widely circulated video, addressed the charges, depicting the situation as a divine misunderstanding.
Despite lacking any previous experience in cryptocurrency trading, pastor Regalado claimed he felt compelled to sell INDXcoin due to a divine directive. He asserted, “God is in the business of doing new things and breaking seals. And he did tell us to do this.”
Expressing his initial reluctance, Regalado recalled saying, “Lord, I don’t want to do this. I don’t know how to do this. I don’t have any experience in this industry. I don’t know what I’m doing. I don’t want to be caught up in something.”
However, the aftermath proved problematic for investors who acquired INDXcoin, as technical glitches prevented them from converting the cryptocurrency into cash, as revealed by Regalado. He acknowledged the setback, stating, “We launched an exchange. The exchange technology failed. Things went downhill. I know this looks terrible.”
He openly admitted to pocketing a substantial sum and proposed two potential scenarios: either he misheard God, or God was still actively working on the project. The defense maintains that a considerable portion of the funds went towards legitimate expenses, including tax payments and a home remodel, all guided by divine instructions.
While some followers continue to offer unwavering support to Regalado, others recall his history of dubious business decisions and financial woes. Former employees highlight a shift in the business model, from crowdfunding triumphs to the creation of a cryptocurrency that failed to deliver on its lofty promises.
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