A Colorado online church pastor accused of embezzling $1.3 million by selling worshipers worthless cryptocurrency has told his subscribers in a video statement that God told him to do it.
Eli Regalado and his wife were selling their cryptocurrency INDXcoin to Christians in Denver. He claimed that God told him that people would become rich if they invested, the Colorado Securities Division said in a statement.
The pastor only preached at Victorious Grace Church online where he and his wife are listed as the only workers. Regalado had no previous experience with cryptocurrency or exchanges, and said divine inspiration called him to launch INDXcoin and the Kingdom Wealth Exchange.
The sale of INDXcoin raised nearly $3.2 million. At least $1.3 million of that went directly to the Regalado family or was used for their personal gain, according to the complaint filed in Denver District Court. In a video message last week, Eli Regalado said the allegations that he provided $1.3 million were true.
“Of the $1.3 million, half a million went to the tax office, and several hundred thousand dollars went to repair the house, which the Lord commanded us to do.”
The couple also allegedly spent their investors’ money on a Range Rover, luxury handbags, jewelry, home services, boat rentals and snowmobile adventures, according to the complaint. The couple was charged with violating provisions of the Colorado Securities Anti-Fraud Act.
Colorado Securities Commissioner Tung Chan filed civil fraud charges after she was approached by people who invested in INDXcoin and lost money.
Pastor Regalado claimed that God told him that investors would become rich if they invested in INDXcoin. It promoted the cryptocurrency as a low-risk, high-return investment pegged to the average value of the top 100 cryptocurrencies.
In reality, the INDXcoin asset was illiquid and virtually worthless, according to a statement from the securities department. The cryptocurrency was only available on the Kingdom Wealth Exchange. Regalado closed the exchanger – so the asset is nowhere to be sold.
“We believed God’s word and sold cryptocurrency without a clear plan. We still believe that God will perform a miracle. God will do a miracle in the financial sector.”
In the comments on Regalado’s video, dozens of people continue to assure him that God will turn things around.
Eli Regalado, his wife and three of his companies are charged with securities fraud, unlicensed broker-dealer activity, sale of unregistered securities and breach of constructive trust. They are scheduled to appear in Denver District Court next week.
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Source: NBC
