$3 Million Crypto Fraud Scheme Lands Pastor and his Wife in Hot Water

Colorado pastor and spouse charged with organizing $3 million cryptocurrency fraud scheme banned from selling crypto in state

Judge extends freeze on Colorado crypto pastor’s accounts following $3 million crypto fraud scheme.

Last updated: January 31, 2024 02:47 EST | 2 min read

A Colorado pastor and his wife, accused of orchestrating a $3 million crypto fraud scheme, have been barred from selling crypto in the state. The judge presiding over the case has ruled that their accounts will remain frozen, leaving them unable to access any of the funds involved.

Uncovering the $3 Million Crypto Fraud

Just over a week ago, Pastor Eli Regalado and his wife, Kaitlyn Regalado, were charged with fraud by the Colorado Division of Securities. The couple allegedly pocketed $1.3 million worth of cryptocurrency, leaving investors empty-handed.

The Regalados launched their own cryptocurrency, called INDXcoin, through the Kingdom Wealth Exchange, a faith-based crypto exchange also created by the couple. They targeted Christian communities in Denver, claiming that God had directly instructed them that investing in INDXcoin would lead to wealth. However, it turns out that INDXcoin was essentially worthless, as described in a report by the auditor Hacken, which revealed serious technical problems and gave it a rating of “zero out of 10.”

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The Role of INDXcoin in the Crypto Scheme

The Regalados managed to raise over $3.2 million from more than 300 people who believed in their scheme. Shockingly, a large portion of the funds were spent on luxury items such as a Range Rover, home renovations, and even cosmetic dentistry. All the while, the Regalados knew that INDXcoin was essentially worthless, yet they continued to promote it to unsuspecting investors as a low-risk, high-profit investment.

“This case is a sad one for me,” expressed Denver District Court Judge David Goldberg during the hearing. “It’s one of the more egregious cases I have seen where someone in the name of faith, the name of God, preyed upon his congregants, and he did so in the name of the Lord.”

Q&A – What You Need to Know

Q: How did the Regalados manage to convince people to invest in their scheme?

A: The Regalados specifically targeted Christian communities in Denver and claimed that God had assured them that investing in INDXcoin would lead to wealth. They preyed upon people’s trust and faith, using religion as a tool to deceive.

Q: What happened to the money raised in the scheme?

A: The Regalados spent a significant portion of the funds on personal expenses, including luxury purchases such as a Range Rover and home renovations. They also knew that INDXcoin had serious technical flaws and was essentially worthless.

Q: Is there any legal recourse for the defrauded investors?

A: It is likely that investors will pursue legal action to recover their funds. However, due to the fraudulent nature of the scheme, it may be challenging to recover the full amount.

For more information on the case, you can follow the latest updates on Google News.

Future Outlook and Investment Recommendations

Looking ahead, it is crucial to remain vigilant and do thorough due diligence before investing in any cryptocurrency or financial scheme. Scams and frauds are unfortunately prevalent in the crypto space, and it is essential to rely on reputable platforms and conduct comprehensive research before committing any funds.

As always, only invest what you can afford to lose, and don’t be swayed by promises of guaranteed returns or heavenly prophecies. Trust your instincts, consult with financial advisors, and heed warnings from industry experts to protect yourself from falling victim to fraudulent schemes.

Reference List

1. Denver pastor claims $300k home renovation funded by crypto scam is “God’s Plan”
2. India names Binance among 9 crypto exchanges violating AML rules, blocks URLs
3. Report by the auditor Hacken on INDXcoin

Remember, knowledge is power, so stay informed and make wise investment decisions.

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