A US pastor and his wife are facing a civil lawsuit for allegedly selling a worthless cryptocurrency called INDXcoin to members of their congregation and pocketing $1.3 million. Eli Regalado, who runs an online church, defended his actions by insisting that he was following divine guidance.
The couple, Eli and Kaitlyn Regalado, are the subjects of a lawsuit filed by the Colorado Attorney General’s Office. The complaint alleges that they promoted INDXcoin to fellow Christians in Colorado, promising that investments would lead to financial prosperity through divine intervention. Despite their lack of experience in cryptocurrency, the Regalados convinced approximately 300 people to invest a total of $3.2 million in INDXcoin, as revealed by the Colorado Division of Securities.
Facing accusations of fraud, Eli Regalado doubled down on his claim of receiving instructions from God. In a video posted on a forum for INDXcoin investors, he admitted to using part of the $1.3 million for home improvements, stating that it was also a divine directive. Regalado explained, “So the charges are that Kaitlyn and I have pocketed $1.3 million, and I just want to come out and say that those charges are true. Out of that 1.3, half a million dollars went to the IRS and a few $100,000 went to a home remodel that the Lord told us to do.”
The lawsuit further alleges that the couple spent the funds on luxury items, including a Range Rover, jewelry, expensive handbags, and snowmobile trips.
Regalado admitted the possibility of misinterpreting divine guidance but remained hopeful that God would intervene in the INDXcoin project. He said, “Either I misheard God… or God is still not done with this project. What we’re praying for… is that God is going to work a miracle in the financial sector. He is going to bring a miracle into INDXcoin.”
Colorado Securities Commissioner Tung Chan warned potential investors to be cautious of get-rich-quick schemes and not to take them at face value. Chan stated, “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. New coins and new exchanges are easy to create with open-source code. We want to remind consumers to be very skeptical.”
The Regalados are scheduled to appear in a Denver court next week to face the legal action brought against them.