Unholy Cryptocurrency Scam: Pastor and Wife Faces Legal Action for “God-Backed” Token Fraud

Pastor Eligio Regalado and his wife facing legal charges for scamming investors with unregistered crypto token INDXcoin.

Ruholamin Haqshanas Last updated: January 20, 2024 04:25 EST | 2 min read Image Source: Pixabay

SEC freezes assets of church for selling unregistered ‘God-Backed’ crypto token.

Colorado-based pastor Eligio “Eli” Regalado and his wife, Kaitlyn, are in hot water after allegedly defrauding investors of millions of dollars through the sale of an unregistered crypto token, called INDXcoin. 🕵️‍♂️💔

A Divine Deception

The Regalados marketed INDXcoin as a “God-backed” digital asset primarily targeting devout Christians. They managed to raise a staggering $3.2 million through their online church, Victorious Grace. However, their actions didn’t go unnoticed.

The Colorado Securities Commissioner filed a lawsuit against the Regalados, accusing them of fraudulent activities and the illegal sale of securities without proper registration. As a result, a Colorado judge has frozen the assets of Victorious Grace Church. ⛔❄️

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According to legal filings, the Regalados claimed that INDXcoin was backed by a cryptocurrency index and had sufficient assets to secure its value. But here’s the twist – the Colorado Securities Commission alleges that the token had little to no backing, except for the couple’s audacious claim that it was supported by God’s guarantee of success. 🙏🤑

The complaint states, “Defendant Eli leveraged the potential investors’ faith. He stated that their investments’ success was guaranteed by God.” 🎭🏦

A Security Masquerading as a Utility Token

Initially, the Regalados argued that INDXcoin was a utility token, attempting to evade regulations associated with security offerings. However, experts promptly refuted their claim, asserting that the token unquestionably qualified as a security. Refusing to give up, the couple doubled down, insisting that God himself deemed INDXcoin a utility token. 😇🔒

Investors voicing concerns over the lack of returns were told by Eli Regalado to hold onto their investments, citing divine guidance. The Regalados also held total control over the Kingdom Wealth Exchange, the platform facilitating the exchange of INDXcoin for USD. Colorado regulators allege that the couple routinely shut down the platform to prevent a bank run. Why, you ask? 🤔💥

Divine Instructions, Luxurious Expenses

As if defrauding investors wasn’t enough, the Regalados allegedly misappropriated $1.3 million for their personal expenses. These included splurges on luxury items, cosmetic dentistry, vacations, and even home renovations. Talk about divine intervention! 🏖️💸💄

In a video posted on the INDXcoin community site, Eli Regalado admitted to the charges, claiming that a significant portion of the funds had gone to the IRS and a home remodel that God had instructed them to undertake. Well, that’s one way to interpret divine guidance! 😇🏠💸

The Courtroom Showdown

The Regalados are scheduled to appear in court on January 29 for a hearing on the Colorado Securities Commissioner’s request for a preliminary injunction. Will they face the wrath of the law or invoke divine protection to escape accountability? Only time will tell. 😈⚖️

Stay Informed, Stay Secure

While this scandalous case certainly captures attention, it’s important to highlight that cryptocurrency fraud and deceptive practices can happen anywhere. It’s crucial to stay informed and exercise caution when investing in any digital assets. Remember, even the holiest-sounding projects can turn out to be unholy scams. 🧐🔒

Additional Information and Insights

Q: Are there any other recent cases of cryptocurrency fraud?

A: Yes, there have been several cases of cryptocurrency fraud in recent years. One notable example is the ongoing lawsuit between the SEC and Terraform Labs, where the SEC is seeking to determine the status of certain cryptocurrencies as securities. Read More

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