A pastor of an online church in Colorado has recently been charged with defrauding investors out of approximately $3.2 million through a cryptocurrency marketplace. The pastor, Eli Regalado, and his wife, Kaitlyn Regalado, were charged with civil fraud by Colorado’s securities commissioner.
Instead of quoting the pastor’s claim that “the Lord” advised him to carry out the scam, it has been replaced with a description of the allegations against him. Investigators found that Regalado targeted the Christian community, promising financial success if they invested in a cryptocurrency he created called INDXcoin. However, it was later discovered that the cryptocurrency was “essentially worthless” and “illiquid,” leaving investors with significant financial losses.
The Regalados operated a cryptocurrency marketplace called the Kingdom Wealth Exchange, and it is alleged that they used a significant portion of the funds raised to fund an extravagant lifestyle. They spent over $1.3 million on luxury items such as jewelry, designer handbags, cosmetic dentistry, clothing, and home remodeling. Additionally, they allegedly used some of the proceeds to purchase a Range Rover.
In a video statement, Regalado admitted to the allegations and claimed that a portion of the funds went to the IRS and a home remodel that he believed the Lord instructed him to do. He also expressed his belief that God would bring a miracle to the financial sector and ensure that investors receive their money back.
The case highlights the importance of conducting thorough research and due diligence before investing in cryptocurrencies or any other financial products. It serves as a reminder to potential investors to be cautious of promises of guaranteed wealth and to be aware of potential scams and fraudulent schemes in the cryptocurrency market.
Cryptocurrency scams are a growing concern worldwide, and regulators continue to crack down on fraudulent activities. It is crucial for investors to stay informed, seek professional advice, and exercise caution when engaging in cryptocurrency investments.
Frequently Asked Questions (FAQs)
1. What is the article about?
The article is about a pastor in Colorado who has been charged with defrauding investors out of $3.2 million through a cryptocurrency marketplace.
2. Who is the pastor involved in the fraud?
The pastor involved in the fraud is Eli Regalado.
3. What were the charges against Eli Regalado and his wife?
They were charged with civil fraud by Colorado’s securities commissioner.
4. How did Regalado carry out the fraud?
Regalado targeted the Christian community and convinced them to invest in a cryptocurrency called INDXcoin, promising financial success. However, it was later revealed that the cryptocurrency was essentially worthless, causing investors to suffer significant financial losses.
5. What was the pastor’s defense?
Regalado claimed that “the Lord” advised him to carry out the scam. However, this claim was not considered in the article, and instead, the focus was on the allegations against him.
6. What was the Regalados’ cryptocurrency marketplace called?
The Regalados operated a cryptocurrency marketplace called the Kingdom Wealth Exchange.
7. How did the Regalados use the funds they raised?
They allegedly used a significant portion of the funds to fund an extravagant lifestyle, including luxury items, home remodeling, and the purchase of a Range Rover.
8. What did Regalado admit to in a video statement?
Regalado admitted to the allegations and claimed that some of the funds went to the IRS and a home remodel, which he believed the Lord instructed him to do. He also expressed his belief that God would bring a miracle to the financial sector and ensure that investors receive their money back.
9. What lessons can be learned from this case?
This case highlights the importance of conducting thorough research and due diligence before investing in cryptocurrencies or any other financial products. It serves as a reminder for potential investors to be cautious of promises of guaranteed wealth and to be aware of potential scams and fraudulent schemes in the cryptocurrency market.
Key Terms and Jargon
– Cryptocurrency: A digital or virtual form of currency that uses cryptography for security and operates independently of a central bank.
– INDXcoin: The cryptocurrency created by Eli Regalado, which was later found to be worthless.
– Civil fraud: The act of deceiving someone for personal or financial gain, which can lead to civil legal consequences.
Related Links
– U.S. Securities and Exchange Commission
– Financial Conduct Authority (UK)
– FBI: White Collar Crime
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