A Colorado pastor facing civil fraud charges allegedly told congregants of his online church God not only promised him “directly” that those who bought into his cryptocurrency would become rich, the Lord also instructed him and his wife to “pocket” $1.3 million of their investors’ money.
In a video to his followers, Eli Regalado admitted the allegations lodged against him and his wife, Kaitlyn, by the Colorado officials are, indeed, “true.” However, Regalado also said he expects God “is going to do a miracle” soon “in the financial sector” that’ll finally deliver returns to his flock.
The couple have been charged with violating anti-fraud provisions under the Colorado Securities Act.
“I know this looks bad — I know this looks terrible,” Regalado acknowledged in the 9-minute video, adding that he either “misheard” the Almighty about launching INDXcoin last April, or “God is still not done with this project.”
State officials allege the worthless INDXcoin was sold specifically to members of the Christian community through the Kingdom Wealth Exchange (KWE), an online cryptocurrency market “they created, controlled and operated.”
“We sold a cryptocurrency with no clear exit,” Regalado admits in the video. “We did. We took God at his word, and sold a cryptocurrency with no clear exit. So, the prosecutors have to take that and say, ‘These people willingly sold a cryptocurrency with no clear exit.'”
In court, Regalado said that he plans to explain “why we did it” in detail, including how they were acting under God’s direction.
The pastor, who admitted in a YouTube live podcast he served prison for stealing cars, started the online-only Victorious Grace Church with his wife.
He told his follows in a video in August 2022 God “brought this cryptocurrency to me” in late 2021. “He said, ‘Take this to my people for a wealth transfer,'” Regalado said in the video.
The state alleges that, through presentations at his church and others churches he found through other pastors, the couple allegedly hawked the unregistered crypto, raising nearly $3.2 million.
In his most recent video, Regalado notes that “out of the $1.3 [million]” the couple kept for themselves, “half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel the Lord told us to do.”
The state alleges the couple “used” the money “for their own personal benefit,” buying, among other things, jewelry, designer handbags, and a Range Rover.
“Mr. Regalado took advantage of the trust and faith of his own Christian community and … peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” said Colorado Securities Commissioner Tung Chan in a statement.
Added Chan: “They specifically went out to the Christian community, and there’s a lot of references to scripture and faith. He cloaks himself in that to get people to give their money to him. That’s really heartbreaking for the people who trusted him.”
Regalado has no cryptocurrency or exchange experience. Chan’s office started investigating him and his wife after investors who’d lost money reached out to them.
“God bless you,” Regalado ends his latest video with. “God is not done with INDXcoin. Join us and just believe and receive everything that God has said about this project in his promises.”
Comments on the video from Regalado’s followers indicates they still have faith in the illiquid crypto.
The couple will appear in Denver District Court on Jan. 29. Attempts to reach them for comment were unsuccessful Tuesday.