Colorado Pastor Faces Charges in Crypto Scam

Prosecutors claim the Regalados personally gained over £1.3 million between June 2022 and April 2023. Mr. Regalado justified his actions, stating that God had inspired the plan, promising investors wealth through INDXcoin, a cryptocurrency created and marketed by the couple. 

Pastor Eli Regalado and his wife, Kaitlyn, face accusations of defrauding investors by selling nearly £2.4 million in allegedly worthless cryptocurrency. 

The funds raised were purportedly used for the couple's extravagant lifestyle, including a Range Rover and luxury items. 

Despite lacking cryptocurrency expertise and an auditor's warning of INDXcoin's issues, the Regalados allegedly presented it as a low-risk, high-profit investment. 

Colorado Securities Commissioner Tung Chan filed civil fraud charges, citing violations of anti-fraud protections under the Colorado Securities Act. 

The cryptocurrency was offered through the Kingdom Wealth Exchange, owned by the Regalados, but investigations revealed INDXcoin's illiquidity and near worthlessness.  

He confirmed the receipt of £1.3 million but claimed that half went to the IRS and £200,000 was used for a home remodel. 

Complaints from investors who lost money prompted the investigation. Mr. Regalado acknowledged the cryptocurrency's failure and stated that the alleged worthlessness was due to investors' inability to withdraw funds. 

Colorado prosecutors seek preliminary and injunctive relief, damages for investors, and the placement of a constructive trust on the couple's property. 

The pastor addressed the allegations in a video statement, explaining that they launched an exchange that failed, leading to financial difficulties.