In a shocking turn of events, online pastor Eligio "Eli" Regalado and his wife, Kaitlyn, are facing serious legal troubles after being indicted on 40 counts of fraud in Denver, Colorado. The couple, who led Victorious Grace Church, allegedly ran a cryptocurrency scam that they claimed was divinely inspired. They sold a digital currency named “INDXcoin” to their followers, promising them a path to wealth that they insisted was guided by God.
The Colorado Securities Commissioner, Tung Chan, has filed civil fraud charges against the Regalados and their companies, INDXcoin, LLC, and Kingdom Wealth Exchange, LLC. These charges stem from accusations of violating multiple provisions of the Colorado Securities Act, including anti-fraud regulations and licensing requirements. The couple reportedly raised nearly $3.2 million from over 300 investors, many of whom were members of their church community.
Regalado’s claims were bold. He told his followers that God instructed him to share this cryptocurrency as a means of wealth transfer, declaring, “It is coming, people,” and assuring them that they would soon experience unprecedented financial blessings. However, investigators uncovered troubling evidence. According to court documents, the couple allegedly misused funds for personal luxuries, including vacations, jewelry, and home renovations, rather than investing in the promised cryptocurrency.
Denver District Attorney John Walsh emphasized the importance of holding the Regalados accountable, stating, “These charges mark a major step forward in our work to hold the Regalados accountable for their alleged crimes and to bring a measure of justice to the victims.” The investigation revealed that the couple’s extravagant spending raised red flags, prompting authorities to take action.
Despite the legal challenges, Regalado maintained his innocence, claiming that he was merely following what he believed to be God’s voice. In a now-private video, he explained that out of the approximately $3.4 million raised, around $1.3 million was spent on personal expenses, including a significant amount for taxes and home improvements. He insisted that God was still in control, even as the situation unraveled.
In their defense, the Regalados argued that INDXcoin was a “utility coin” intended for faith-based communities, not a security that required registration. However, the Colorado Securities Commissioner is seeking a permanent injunction against the Regalados, a freeze on their assets, and restitution of $3.4 million.
The situation has raised important questions about trust within religious communities and the ethical responsibilities of leaders. Many are left wondering how such a significant breach of trust could occur in a setting that is meant to inspire faith and community support. The Colorado Division of Securities has stated that they believe the Regalados exploited the faith of their followers, offering unrealistic promises in exchange for their investments.
As this case unfolds, it serves as a cautionary tale about the intersection of faith, finance, and accountability. It reminds us that while faith can be a powerful motivator, it is crucial to approach financial matters with discernment and caution. For those seeking guidance on ethical investing and financial stewardship, resources such as the National Christian Foundation can provide valuable insights.
The Regalado case will continue to develop, and many will be watching closely to see how the legal proceedings unfold. For now, it stands as a stark reminder of the importance of integrity in both spiritual and financial matters. As the situation progresses, it will be essential for communities to come together, support one another, and seek justice for those affected.