A pastor and his spouse have been charged with fraud for allegedly making a cryptocurrency, promoting it to Christian communities and utilizing the income to fund their “lavish way of life,” authorities say.
Eli Regalado, a pastor from Denver, Colorado, and his spouse, Kaitlyn Regalado, “created, marketed and bought a cryptocurrency often called ‘INDXcoin’ to members of the Christian neighborhood,” in response to an announcement from the Colorado Division of Securities. “INDXcoin was additionally supplied via Kingdom Wealth Trade (KWE), a web based cryptocurrency trade that they created, managed and operated.”
Colorado Securities Commissioner Tung Chan filed civil fraud prices Thursday towards Eligio (Eli) and Kaitlyn Regalado of Denver, together with the businesses they used to allegedly promote the cash, for alleged violations of anti-fraud provisions, license and Colorado Registration Legislation. Securities Legislation.
“In line with the criticism filed by the Colorado Lawyer Common’s Workplace, Colorado Securities Division investigators discovered that from June 2022 to April 2023, INDXcoin raised almost $three.2 million from greater than 300 folks,” authorities stated. “The criticism alleges that Regalado focused Christian communities in Denver and claimed that God immediately advised him that buyers would change into wealthy in the event that they invested cash in INDXcoin.”
The Colorado Division of Securities says the Regalados had no expertise in cryptocurrencies “which turned clear when a third-party auditor’s report allegedly described their INDXcoin code as insecure and affected by severe technical issues.”
The Regalados, nonetheless, continued to advertise INDXcoin as a low-risk, high-return funding when, in response to the criticism towards them, “INDXcoin was illiquid and just about nugatory” as its buyers misplaced tens of millions of dollars and Gifted they dissipated. funds to help their “luxurious way of life.”
“We allege that Mr. Regalado took benefit of the belief and religion of his personal Christian neighborhood and bought them extravagant guarantees of wealth when he bought them basically nugatory cryptocurrencies,” Commissioner Chan stated. “It’s straightforward to create new cash and new exchanges with open supply code. “We need to remind customers to be very skeptical.”
The motion, filed in Denver District Court docket, seeks preliminary and injunctive reduction, damages for buyers, and constructive belief be positioned on the defendants’ property.
The investigation into Regalado’s dealings is at present ongoing and authorities are anybody who invested in INDXCoin or any of Regalado’s different entities to contact the Colorado Division of Securities at dora_SecuritiesWebsite@state.co.us or 303 -894-2320.