A Denver preacher and his spouse are being prosecuted on civil counts for allegedly developing and marketing a cryptocurrency that the state claims is “practically worthless.” Eligio and Kaitlyn Regalado, a couple, are accused of taking more than $1 million from gullible investors while defending their activities by saying that God had given them instructions to sell a cryptocurrency with no obvious exit plan.

The Charges

In Denver District Court, the Colorado Attorney General’s Office and the Colorado Division of Securities filed a civil action against Mr. and Mrs. Regalado. The prosecution accuses the couple of promoting INDXcoin, a digital coin, primarily to Denver’s Christian community, despite having no prior experience with cryptocurrency exchanges. Through a cryptocurrency exchange they also ran, they allegedly raised close to $3.2 million from over 300 individuals between June 2022 and April 2023.

Taking Advantage of Faith

Commissioner Tung Chan of the Colorado Division of Securities accused Mr. Regalado of betraying the trust and faith of his Christian community and denounced him. Chan claimed that Regalado sold his followers virtually worthless cryptocurrency while making “outlandish promises of wealth”.

The Opulent Way of Living

The accusations state that the Regalados remodeled their property and maintained a luxury lifestyle with the money they raised. It is rumored that the couple received approximately $1.4 million out of the over $3 million that was raised through INDXcoin. A few hundred thousand dollars went toward remodeling their house, and another half a million dollars was given to the Internal Revenue Service.

Mr. Regalado stated in a video answer to the civil case that they sold the bitcoin because they trusted in God’s word, despite the fact that there was no apparent way to get rid of it because of problems with the cryptocurrency exchange. He claimed to have received instructions to enter the cryptocurrency industry from the Lord in a dream.

The Dissecting and Court Cases

Regalado acknowledged that he might have misunderstood God’s instructions when he said that the project began to fail approximately nine months ago. He offered two explanations: either God was not finished with the endeavor and was going to do a “new thing,” or he misinterpreted supernatural guidance.

Regarding the current legal dispute, the Colorado Attorney General’s Office chose not to comment; however, the prosecution is requesting damages to make up for investment losses. In the video, Mr. Regalado stated that he and his spouse planned to present their case, stating that they hoped to help investors get part of their money back.

The Pastor Eligio Regalado and his wife’s case serves as a warning about the possible risks associated with using religious belief as a prop in business endeavors. Authorities are entrusted with determining the truth behind the pastor’s alleged misuse of trust and misleading activities in the cryptocurrency realm, while investors wait for repayment until the legal proceedings play out.