Colorado state regulators have filed a civil lawsuit against a Denver pastor, Eli Regalado, and his wife, Kaitlyn, over allegations of a crypto scam involving their creation, INDXcoin.
The lawsuit claims that the couple cashed out over $1.3 million worth of INDXcoin, which they founded, to fund a luxurious lifestyle, including a home remodel, jewelry, and luxury vehicles. In response, Pastor Eli Regalado has admitted to cashing out the funds, with half going to the IRS and the rest used for a home renovation, which he claims was ordered by God.
Pastor’s response to crypto scam allegations
The allegations center around the INDXcoin cryptocurrency, which was promoted by Eli and Kaitlyn Regalado. In a video response posted on INDXcoin’s community forum, Pastor Eli Regalado acknowledged that investors in the cryptocurrency currently have no means of cashing out their investments.
Regalado attributed this situation to the failure of the exchange technology used to facilitate INDXcoin transactions.
The pastor said he launched an exchange, and technology failed, and from that point forward, they had just been waiting on the Lord literally for a miracle in his video response.
Despite their legal troubles, both Regalados claim to be ordained ministers affiliated with Destiny Churches and Ministries International, with an online-only church known as Victorious Grace Church.
Interestingly, Destiny Churches has also promoted INDXcoin on its Facebook page, boasting a following of approximately 1,000 followers.
Allegations of lavish spending and misrepresentation
Colorado state regulators accuse the Regalados of cashing out INDXcoin funds to finance a lavish lifestyle. According to BusinessDen, the couple allegedly spent these funds on items such as a Range Rover, jewelry, luxury handbags, and more, while simultaneously assuring investors that their contributions would be used to support causes aiding widows and orphans.
In his video response, Pastor Eli Regalado did not deny these allegations, stating, “The charges are that Kaitlyn and I pocketed $1.3 million…those charges are true. Out of that 1.3, half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel the Lord told us to do.”
Hopes for divine intervention
Despite admitting to the financial transactions, Pastor Regalado expressed hope that a divine miracle would rectify the situation for investors. He emphasized the lack of a clear exit strategy for INDXcoin and the challenges faced by prosecutors in such a scenario. “What we’re praying for, and what we’re believing for still, is that God is going to…work a miracle in the financial sector, He is going to bring a miracle into INDXcoin.
Everyone that has come in for money is going to be able to receive money back,” he said in the video.
The comments on the post featuring Pastor Regalado’s video have largely been supportive, with many expressing their belief in divine intervention. “You are so brave to put this video out…God is leading all of us, and God will get all the glory,” declared one commenter, to which Regalado responded, “We agree 100%.”
Legal actions and frozen bank accounts
In response to the civil complaint filed by state regulators, Judge David Goldberg has taken action to freeze the bank accounts associated with the Regalados and their related businesses. This precautionary measure aims to preserve assets pending the resolution of the lawsuit.
The Regalados are scheduled to appear in Colorado District Court for an initial hearing on January 29th.
The outcome of this case remains uncertain, and investors in INDXcoin may continue to face uncertainty about the fate of their investments. The Regalados’ reliance on divine intervention as a potential solution adds a unique dimension to this ongoing legal saga.
Source: https://www.cryptopolitan.com/regulators-sue-pastor-over-crypto-scandal/