A Colorado-based online pastor, Eligio “Eli” Regalado, is now facing fraud charges, accused of allegedly misappropriating $1.3 million from a cryptocurrency scheme he promoted to his followers. The scheme, which raised nearly $3.2 million from over 300 individuals in the Denver Christian community, involved the sale of a cryptocurrency called INDXcoin.
Eli Regalado and his wife, Kaitlyn Regalado, were named in a legal complaint filed with Colorado’s securities commissioner, asserting that the couple violated the anti-fraud, licensing, and registration provisions of the Colorado Securities Act. The complaint alleges that the Regalados targeted a devout Christian community, leveraging Eli’s religious position to sell an “unsafe” and “unsecure” product.
According to the securities commissioner, investors were persuaded with the claim that God was directly involved in the cryptocurrency, resulting in significant financial losses. The Regalados began marketing INDXcoin to their parishioners in June 2022, using the online cryptocurrency platform Kingdom Wealth Exchange (KWE), which they created, controlled, and operated.
In a recent video addressing his followers, Eli Regalado reaffirmed that God had instructed him to create the cryptocurrency, assuring investors of future wealth. He admitted to personally pocketing $1.3 million, with some funds used for a home remodel. The legal complaint alleges that the Regalados led a lavish lifestyle, including the purchase of a Range Rover, luxury items, and various recreational activities.
The securities commissioner emphasized that Mr. Regalado exploited the trust of his Christian community by making unrealistic promises of wealth through essentially worthless cryptocurrencies. Regalado, lacking prior experience in finance or crypto sectors, acknowledged technical failures in their planned exchange technology, preventing investors from cashing out.
Despite doubts expressed in the video, followers commented, expressing belief in a divine solution. The Colorado Division of Securities urges those who invested in INDXcoin or any other Regalado businesses to contact them. Eli and Kaitlyn Regalado, along with three companies under Eli’s name, face charges including securities fraud, unlicensed broker-dealer activity, selling unregistered securities, and imposition of constructive trust. Their court appearance is scheduled for the following week in Denver District Court.