A Colorado-based online pastor, Eligio "Eli" Regalado, and his wife, Kaitlyn Regalado, are facing fraud charges after allegedly pocketing $1.3 million from a cryptocurrency scheme that raised nearly $3.2 million. The legal complaint, filed with Colorado's securities commissioner, accuses the couple of violating anti-fraud provisions and exploiting their religious position to sell an "unsafe" and "unsecure" product to a devout Christian community.
The complaint details that the Regalados marketed the cryptocurrency, named INDXcoin, to the Denver Christian community, emphasizing divine guidance and promises of wealth. Investors, believing God's involvement, have reportedly lost millions. The couple not only created and controlled the cryptocurrency but also sold it through Kingdom Wealth Exchange (KWE), an online platform they operated.
Eli Regalado, claiming God's direct instructions for the crypto venture, addressed followers in a video where he admitted to $1.3 million going into his own pockets. The legal complaint alleges the couple maintained a "lavish lifestyle," including purchases like a Range Rover, luxury items, and extravagant expenditures, while investors were deceived about the investment's risks.
The Colorado Division of Securities urges affected investors to come forward. The Regalados, charged with securities fraud, unlicensed broker-dealer activity, selling unregistered securities, and imposition of constructive trust, are scheduled to appear in Denver District Court next week.
