Standing on claims of divine providence, a Colorado pastor and his wife are now facing earthly consequences after influencing their congregation to invest in a cryptocurrency they created.

The Colorado Securities Commission filed civil fraud charges against Eligio (Eli) and Kaitlyn Regalado of Denver, INDXcoin LLC, Kingdom Wealth Exchange LLC and others for alleged violations of the anti-fraud, licensing and registration provisions of the Colorado Securities Act, according to a news release.

Regalado, a pastor, and his wife, Kaitlyn, created, marketed and sold a cryptocurrency, known as the “INDXcoin,” to members of the Christian community, according to the release. The INDXcoin was also offered through the Kingdom Wealth Exchange (KWE), an online cryptocurrency exchange that they created, controlled and operated.

According to the complaint filed by the Colorado Attorney General’s Office, investigators from the Colorado Division of Securities found that from June 2022 to April 2023, INDXcoin raised nearly $3.2 million from more than 300 individuals. The complaint alleges that Regalado targeted Christian communities in Denver and claimed that “God told him directly that investors would become wealthy if they put money into INDXcoin.”

A post from Eli Regaldo on X says, “Sowing into God’s kingdom gives you an economic advantage over any one of your competitors.”

“The Regalados had no experience in cryptocurrency which was clear when a third-party auditor’s report allegedly described their INDXcoin code as unsafe, unsecure and riddled with serious technical problems,” a statement from Colorado Securities Commissioner Tung Chan’s office says. “Despite that report, the Regalados allegedly continued to promote the INDXcoin as a low risk, high profit investment.”

The complaint alleges that, in reality, the INDXcoin was illiquid and practically worthless, investors lost millions, and defendants dissipated investor funds to support their lavish lifestyle.

“We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” said Chan. “New coins and new exchanges are easy to create with open-source code.  We want to remind consumers to be very skeptical.”

Currently, the INDXcoin website is still active, although its frequently asked questions page was inaccessible.

In a live podcast interview on YouTube titled “Following God’s Voice Into Crypto”, Regalado is shown making claims like, “The Lord tells me I need you to take cryptocurrency to my people.”

In that same podcast, Regalado admits to previously having been sentenced to prison time for “boosting cars” while 22 years old.

While the current action sought by the Colorado Division of Securities and Attorney General does not mention prison time, it does seek seeks preliminary and injunctive relief, damages for investors and for a constructive trust to be placed on the defendants’ property, according to the release.

The Colorado Securities Commission offers tips on its website to avoid becoming a victim of securities fraud.

The commission requests that if anyone has invested with INDXCoin or any of Eli Regalado’s other entities, to contact the Colorado Division of Securities at dora_SecuritiesWebsite@state.co.us or by calling (303) 894-2320. 

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