(CMR) An online pastor charged with civil fraud for selling a “practically worthless” cryptocurrency said God told him to do it, although it’s possible he “misheard.”
Colorado’s securities commissioner filed a legal complaint against Eligio Regalado, who goes by Eli, and his wife, Kaitlyn Regalado, last week, after the couple raised nearly $3.2 million by targeting Denver’s Christian community with the cryptocurrency, marketed as INDXcoin.
The alleged scheme raised nearly $3.2 million from over 300 individuals in less than a year.
The couple is accused of violating Colorado’s anti-fraud, licensing, and registration laws. Investigators said the cryptocurrency was promoted as a “low risk, high-profit investment” while it was actually “illiquid and practically useless.”
In a video message, Regalado confirmed that he and his wife made $1.3 million from selling the cryptocurrency, of which they spent “a few hundred thousand dollars” on “a home remodel that the Lord told us to do.”
“Either I misheard God, and every one of you who prayed and came in — you as well. Or two, God is still not done with this project,” Regalado said.
“We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” said Colorado Securities Commissioner Tung Chan, who filed the civil fraud charges.
“New coins and new exchanges are easy to create with open source code. We want to remind consumers to be very skeptical,” Chan warned.
- Fascinated
- Happy
- Sad
- Angry
- Bored
- Afraid