Pastor Eli Regalado and his wife, Kaitlyn, are facing fraud charges after allegedly misusing $1.3 million invested in their failed cryptocurrency project, INDXcoin. Colorado Securities Commissioner Tung Chan filed a lawsuit last week accusing the couple of operating an illegal securities scheme.
According to authorities, over 300 investors poured more than $3 million into INDXcoin after Regalado, an ordained minister, promoted the token in Christian communities as a wealth-building opportunity ordained by God. However, the exchange technology failed, and Regalado admitted in a video statement that INDXcoin is now “illiquid and practically worthless.”
In his statement, Regalado confessed to the charges but said he is still waiting for a “miracle” from God to make investors whole. Most online comments supported the pastor, with many quoting Bible verses about faith.
“I just wanted to come out and say those charges are true.” Regalado added: “A few hundred thousand dollars went to a home remodel the Lord told us to do. We took God at his word and sold a cryptocurrency with no clear exit.”
“The Lord told us to walk away from our parking company. … He took us into this cryptocurrency … well, that cryptocurrency turned out to be a scam…. And I said Lord … you told me to do this,” he said in the video.
A court hearing is scheduled for January 29th to begin proceedings in the case. Securities Commissioner Chan admonished that Regalado “took advantage of the trust and faith of his Christian community and peddled outlandish promises of wealth.” While maintaining his innocence, Regalado admitted INDXcoin is now worthless, saying “things went downhill” after the exchange technology failed.