Denver Pastor Accused of Misappropriating $1.3 Million Raised via a Crypto Token Sale

Denver Pastor Accused of Misappropriating $1.3 Million Raised via a Crypto Token Sale

In a recent case that has sparked widespread controversy, a Denver pastor has been accused of misappropriating $1.3 million that was raised through a crypto token sale. Reverend Eli Regalado, the creator of the cryptocurrency INDX coin and pastor of an online-only church, allegedly sold these “worthless” coins to investors, ensuring that they would not recoup their investments. Regalado is further accused of using his position as a religious leader to persuade followers to invest in the cryptocurrency, claiming that the Lord had instructed him to create it. As legal proceedings move forward, a judge has ordered the closure of the pastor and his wife’s bank accounts for two weeks.

Denver Pastor Accused of Misappropriating $1.3 Million Raised via a Crypto Token Sale

The Colorado Securities regulator has accused Reverend Eli Regalado, the creator of the cryptocurrency INDX coin and the pastor of the online-only Victorious Grace Church, of illegally pocketing $1.3 million that was raised through the sale of the cryptocurrency. This accusation has led to a judge in Colorado ordering the closure of the pastor and his wife’s bank accounts for a period of 14 days.

‘The Lord Brought This Cryptocurrency to Me’

The securities regulator in Colorado has filed a lawsuit against Reverend Eli Regalado, alleging that he sold “worthless” INDX coins for a total of $3.4 million between 2022 and the first half of 2023. The Colorado securities commissioner, Tung Chan, claims that Regalado ensured that investors in his coin would not recoup their investments.

According to reports, Regalado allegedly pocketed $1.3 million from the token sales, which he spent on personal indulgences such as a Range Rover, jewelry, luxury handbags, cosmetic dentistry, and boat rentals. The lawsuit suggests that Regalado used his position as a religious leader to persuade his followers to invest in the cryptocurrency. In one sermon, he claimed that his lord had instructed him to create the now-defunct INDX coin.

Background of Reverend Eli Regalado and Victorious Grace Church

Reverend Eli Regalado is the pastor of Victorious Grace Church, an online-only congregation. His involvement in the creation and sale of INDX coins has attracted the attention of the Colorado Securities regulator. The church, which operates exclusively online, provides religious services and spiritual guidance to its members.

Sale of INDX Coins

Regalado is accused of selling INDX coins to investors, claiming they held significant value. However, the Colorado securities commissioner has stated that these claims were false. The lawsuit filed against Regalado alleges that he falsely represented the value of the INDX coins, suggesting they were worth at least $10 each, or a total of $300 million for the 30 million coins in circulation.

Accusations of Misappropriation

The Colorado Securities regulator has accused Reverend Eli Regalado of misappropriating the funds raised through the sale of the INDX coins. The lawsuit suggests that Regalado used investor funds for personal expenses, including luxury items and recreational activities. By diverting the funds for personal use, Regalado is alleged to have deprived investors of their rightful returns.

Regalado’s Extravagant Purchases

During the investigation, it was discovered that Reverend Eli Regalado spent a significant portion of the funds raised from the sale of INDX coins on extravagant purchases. This includes the acquisition of a Range Rover, jewelry, luxury handbags, cosmetic dentistry, and boat rentals. These indulgences raise questions about the pastor’s integrity and the legitimacy of the INDX coin project.

INDX Coins ‘Technologically Deficient’

In addition to the accusations of misappropriation, the Colorado Securities regulator has highlighted significant concerns about the technological deficiencies of INDX coins and the marketplace where they are traded.

False Claims of INDX Coin Value

Reverend Eli Regalado and his wife, Kaitlyn Regalado, allegedly made false claims about the value of the INDX coins. They claimed that each coin was worth at least $10, collectively valuing the 30 million coins at $300 million. However, the Colorado securities commissioner has dismissed these claims, stating that they were fraudulent and aimed at deceiving investors.

Description of INDX Coins and Marketplace

The lawsuit filed against Regalado and his wife also described the INDX coins and the marketplace where they were traded as being “catastrophically technologically deficient.” This suggests that the infrastructure supporting the INDX coin project was inadequate and unable to provide a secure and reliable platform for investors to buy, sell, and trade the coins.

Closure of Regalados’ Bank Accounts

After reviewing the allegations presented in the lawsuit against Reverend Eli Regalado and Kaitlyn Regalado, a U.S. judge ordered the closure of their bank accounts and the bank accounts of associated companies for a period of 14 days. This measure aims to safeguard the funds involved in the alleged misappropriation and prevent further deceptive activities.

In conclusion, the allegations against Reverend Eli Regalado and his wife Kaitlyn Regalado paint a troubling picture of financial misconduct and deception within the cryptocurrency sector. The investigation into the misappropriation of funds raised from the sale of INDX coins highlights the need for robust regulations and investor protections in the emerging cryptocurrency market. It serves as a cautionary tale for potential investors to exercise due diligence and skepticism when considering investments in this rapidly evolving industry.