Cleric Face Charges for Alleged Cryptocurrency Fraud, Insists It Was Divine Command
In a shocking turn of events, Colorado Pastor Eli Regalado and his wife Kaitlyn Regalado are facing forty criminal charges, including racketeering, theft, and securities fraud related to the same scam. The charges were announced by District Attorney Walsh, who stated that this is a significant step towards holding the Regalados accountable for their alleged crimes and bringing justice to the victims.
The Regalados are accused of exploiting the trust within their online church, Victorious Grace Church, by creating and selling a cryptocurrency called INDXcoin. The sale of INDXcoin was announced by Eli Regalado on YouTube, where he claimed that God told him to do so and that it was a safe and profitable investment.
Approximately $1.3 million of the 300 investors' money was used to fund the Regalados' extravagant lifestyle, including home renovation, luxury handbags, cosmetic dentistry, and a Range Rover. The cybersecurity audit of INDXcoin rated it as "catastrophically technologically deficient," and the shutdown of the Kingdom Wealth Exchange, the online marketplace started by the Regalados, left purchasers holding INDX coins that could not be bought or sold, rendering them worthless.
To avoid similar investment scams, it is crucial to conduct independent verification, check regulatory registration and status, be wary of pressure and unsolicited offers, avoid clicking on suspicious links or sharing sensitive information, request transparent documentation, consult independent financial or legal advisors, and use multi-factor authentication and safeguard digital security, especially for cryptocurrency investments.
It is also important to note that many investment advisers are not required to register with the Securities and Exchange Commission (SEC), but are required to register with individual state securities regulators. The North American Securities Administrators Association's website can help find your state's securities regulator. The SEC's investor education website (www.investor.gov) can provide additional information and resources for cryptocurrency investing.
The Regalados were not licensed to sell investments and were selling unregistered securities. They claimed divine inspiration for the investment and promised investors they would have more money than they ever had in their life. In 2024, the Colorado Division of Securities charged the Regalados with civil fraud. Eli Regalado and his wife represented themselves in a bench trial for the civil fraud charges in May, but Judge Kutcher has not yet issued a ruling on the charges.
Investing with someone based on shared heritage, nationality, religion, or any other affinity should be avoided. One can also check with their own state's securities regulation office for similar information. FINRA's Central Registration Depository can provide information about a broker's licensing status and any disciplinary procedures against them.
In conclusion, the Regalados' case serves as a stark reminder of the importance of conducting thorough due diligence and maintaining skepticism, even within trusted groups, to prevent losses from affinity fraud, especially in cryptocurrencies.
- The Regalados' alleged crimes, such as securities fraud, racketeering, and cryptocurrency scam involving INDXcoin, fall under the categories of finance, crime-and-justice, and technology.
- To avoid falling victim to affinity frauds like the INDXcoin scam, it is essential to perform independent verification, check regulatory registration, be cautious of unsolicited offers, and consult with independent financial or legal advisors, especially when investing in cryptocurrencies.
