CNN reported that a pastor delivered a message to his congregation in Denver, Colorado.
“After months of prayer and signs from God, he announced in a YouTube video last April that he planned to start selling cryptocurrencies.”
He said the failures of Signature Bank and Silver Gate Bank a few weeks ago suggested that investment options outside of financial institutions should be considered. In God's wisdom, he said, he was “laying the rails for the transfer of God's wealth.” Shortly after, Regalado and his wife Caitlin Regalado launched the cryptocurrency INDXcoin and began selling it to members of Victorious His Grace Church and other Christian communities in the Denver area. They sold it through Kingdom Wealth Exchange, an online cryptocurrency marketplace he created, managed, and operates.
Colorado Securities Commissioner Tun Chan said in the civil complaint that Regalados has raised more than $3.2 million from more than 300 investors. The couple's pitches “include prayers and Bible quotations, encouraging investors to believe that their investments will lead to 'abundance' and 'blessing,'” according to the complaint. However, Colorado regulators said the INDX coin was “essentially worthless.” In exchange for helping investors gain wealth, the complaint alleges, the Regalados used about $1.3 million of their investment funds to pay for lavish expenses, including a Range Rover, jewelry, cosmetic dentistry and lavish vacations. The money also paid for renovations to Regalados' Denver headquarters, according to the complaint.
In a stunning video statement posted online on January 19, days after the civil complaint was filed, Eli Regalado did not dispute that he and his wife profited from the cryptocurrency venture. . “The charges are that Caitlin and I had $1.3 million in our pockets, and I just want to make it known that the charges are true,” he said. He added that the $10,000 was used to renovate the house “to…”
Regalado also said he and his wife used about $500,000 of the investors' money to pay taxes to the IRS.
In the video, Regalado explains how God “convinced him that this was a safe and profitable investment venture,” CNN reported. (“You read that right. God’s hand is on INDXcoin and we are launching!” reads the launch video description.)
“The Regalados used technical terminology to confuse investors into believing the coins were worth $10 to $12, even though they were purchased or, in some cases, gifted, for $1.50. ” the complaint says.
