Pastor Eligio “Eli” Regalado and his wife Kaitlyn, associated with Victorious Grace Church in Denver, reportedly raised $3.2 million through a crypto token called INDXcoin, news website Decrypt reports.

The token was marketed to Christians, claiming divine instruction for its creation.

(Read more: DIGITAL BAYANIHAN: Cryptocurrency Revolutionizing Donations and Top Philippine Charities Accepting Crypto Donations: A Comprehensive Guide)

Legal Action

• The Colorado Securities Commissioner sued the couple for deceiving investors and selling unregistered securities.
• A Colorado judge has frozen the assets of Victorious Grace Church based on these allegations.

Misrepresentation of INDXcoin

• The Regalados claimed INDXcoin was pegged to a crypto index and backed by substantial assets.
• In reality, the coin had minimal backing, with the couple claiming divine endorsement.

Additional Allegations

• Eli Regalado told investors their success was “guaranteed by God.”
• They insisted INDXcoin was a utility coin, not a security, despite expert advice to the contrary.
• The couple controlled Kingdom Wealth Exchange, the only platform for exchanging INDXcoin for USD, which they occasionally shut down.
• Investors were encouraged to keep their investments despite concerns, with Eli claiming divine guidance to “HODL.”

Misuse of Funds

• The Regalados allegedly used $1.3 million of the raised funds for personal expenses like luxury items, vacations, and home renovations.
• Eli Regalado admitted to pocketing $1.3 million but claimed part of it went to the IRS and home renovations as instructed by God.

Upcoming Legal Proceedings

• A hearing is scheduled for January 29 to discuss the request for a preliminary injunction.
• The hearing will address the violation of state securities laws and the legitimacy of the Regalados’ claims of divine guidance.

This article is published on BitPinas: Divine Deception: Colorado Pastor Accused of $3.2 Million Crypto Fraud

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• Source: https://bitpinas.com/feature/colorado-pastor-crypto-fraud/