They exploited everyone’s trust.
An online pastor and his wife, Eligio “Eli” and Kaitlyn Regalado of Denver, are now confronting civil fraud charges in Colorado for their alleged role in selling a valueless cryptocurrency called “INDXcoin” to hundreds of Christians, amassing a total of $3.2 million. The couple, along with INDXcoin, LLC, Kingdom Wealth Exchange LLC, and other associated parties, is accused of violating anti-fraud, licensing, and registration provisions of the Colorado Securities Act, as disclosed by Colorado Securities Commissioner Tung Chan.
The charges were brought forward by the Colorado Attorney General’s Office, asserting that between June 2022 and April 2023, INDXcoin attracted over 300 investors from Christian communities in Denver. The complaint revealed that the Regalados claimed divine guidance in promoting the cryptocurrency, asserting that God ordained it for a “wealth transfer.” Despite these assurances, INDXcoin and Kingdom Wealth Exchange were abruptly shut down on November 1 of the same year.
Eligio Regalado assured investors that God was in control and advised them to stay committed to INDXcoins, promising a miraculous outcome. Prior to the shutdown, the coins were sold at $1.50 each, yet investors were told they were worth at least $10, with 30 million in circulation, theoretically valuing them at $300 million. However, investigators discovered only $30,000 in funds to back the coins.
Colorado Securities Commissioner Chan revealed that the Regalados lacked cryptocurrency experience, and an auditor’s report labeled INDXcoin code as unsafe and plagued with severe technical issues. Despite these concerns, the couple continued to promote the cryptocurrency as a low-risk, high-profit investment. In reality, the INDXcoin was deemed practically worthless, leading to substantial losses for investors.
Chan’s office disclosed that the Regalados allegedly spent approximately $1.3 million on luxury items, including a Range Rover, jewelry, handbags, cosmetic dentistry, boat rentals, snowmobile adventures, home renovations, and an au pair, dissipating investor funds to support their extravagant lifestyle. Emphasizing the exploitation of trust within the Christian community, Chan urged consumers to exercise skepticism, especially with the ease of creating new cryptocurrencies and exchanges.