A Colorado-based online pastor, Eligio “Eli” Regalado, and his wife, Kaitylin, are facing fraud charges after being accused of pocketing $1.3 million from a cryptocurrency scheme that raised nearly $3.2 million.
The legal complaint filed against them alleges violations of anti-fraud, licensing, and registration provisions of the Colorado Securities Act.
The couple targeted a Christian community, selling an “unsafe” and “unsecured” product to church members, using their religious influence.
Investors were told God had a direct hand in the crypto, named INDXcoin, which was later revealed to be “illiquid” and “practically worthless.”
Regalado, who lacked prior financial or crypto experience, admitted technical issues with their exchange technology, making it impossible for investors to withdraw funds. He also confessed to having doubts about initiating INDXcoin in the first place..
“I said: 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,” said Eli. “I don’t want to be caught up in something.”
Reports indicate the couple spent the funds on a lavish lifestyle, including a Range Rover, luxury items, and home renovations, all while promoting a ‘divine’ investment.
The Colorado Division of Securities have called on affected investors to contact them.
Eli and Kaitlyn Regalado, along with three companies, are scheduled to appear in Denver District Court next week.
Watch a video of Eli’s statement below,
