- Eli Regalado, an online pastor, confesses to fraud charges over selling a fake cryptocurrency, INDXcoin.
- Regalado claims divine inspiration led him to promise 10x returns to his followers through INDXcoin.
- Over $3 million was raised from 300 investors, largely from Regalado’s online church community.
Eli Regalado, a pastor from Colorado who heads an online church, has admitted to engaging in fraudulent activities involving a cryptocurrency called INDXcoin. Regalado, along with his partner Kaitlin, faced charges of deceitfully marketing this digital currency, which turned out to be of no value.
Divine Claims and Admissions
Regalado, who also founded INDXcoin, made a startling confession in a video on the currency’s website. He acknowledged that he and Kaitlin had indeed taken $1.3 million, confirming the accusations against them. In a surprising claim, Regalado stated that his actions were guided by a divine message promising tenfold returns to his followers.
The Colorado Securities Commission accused the pastor of exploiting the faith of his Christian community. Securities Commissioner Tung Chan emphasized that Regalado made extravagant promises of wealth while selling a worthless cryptocurrency. The complaint detailed how Regalado specifically targeted Christian groups in Denver, claiming that God had assured him of the financial gains from investing in INDXcoin.
Fundraising and Misuse of Funds
From mid-2022 to early 2023, INDXcoin reportedly gathered nearly $3.2 million from over 300 investors through the Kingdom Wealth Exchange platform. A significant portion of these funds came from Regalado’s online congregation, Victorious Grace Church. According to Regalado, half of the raised amount was paid in taxes, while a substantial part funded a home renovation he claimed was ordained by God.
Closure and Controversy
In November 2023, Regalado shut down the Kingdom Wealth Exchange, citing financial difficulties and claiming he and Kaitlin were nearing poverty. He instructed INDXcoin holders to refrain from selling the token, urging them to resist the pursuit of wealth. Despite these proclamations of financial hardship, the lawsuit filed by Chan alleges that the couple spent most of the $1.3 million on luxury items and personal expenses, contradicting their claims of poverty and divine guidance.