January 30, 2024
Eli Regalado, the online pastor of Victorious Grace Church in Colorado, was involved in civil fraud with his wife, Caitlin Regalado.
Eli Regalado, an online pastor and self-proclaimed prophet associated with Victorious Grace Church in Colorado, has been charged with civil fraud along with his wife, Caitlin Regalado , according to The Washington Post . A complaint filed by the Colorado Securities Commissioner alleges the pair used their share to defraud more than 300 investors out of $3.2 million through their INDXcoin cryptocurrency project.
The Regalados allegedly used written proposals to sell their unregistered securities, luring investors with promises of "abundance" and "blessings." The complaint alleges a scheme in which the pair failed to disclose a lack of securities licenses, a lack of cryptocurrency experience and critical technical flaws in the cryptocurrency that was traded exclusively on their Kingdom Wealth Exchange platform.
"The Lord said: “I want you to build this,” Regalado said. "We believed the word of God and sold cryptocurrencies without any clear means."
The allegations have sent shock waves through the community, prompting former employees and acquaintances to share their thoughts on Pastor Regalado's difficult journey. With a troubled past marked by crimes like carjacking and assaults, Regalado, a self-proclaimed reformer who found faith in prison, built a successful marketing company in 2013 and raised money for projects on Kickstarter. Despite claims of connections by Apple co-founder Steve Wozniak and Wikipedia creator Jimmy Wales, these claims have been questioned.
Regalado's life was spiritually transformed when he claimed to be receiving divine messages guiding his business decisions. After achieving success in the crowdfunding business, he shifted his focus to a Christian t-shirt business and then to the creation of the cryptocurrency INDXcoin. The crowdfunding success turned into an alleged fraud scheme in which the Regalados allegedly spent on personal luxuries, leading to their current problems with the law.
"We allege that Mr. Regalado took advantage of the trust and faith of his Christian community by making extraordinary promises of wealth while he sold them worthless cryptocurrency," Colorado Securities Commissioner Tong Chan said in a statement.
The couple's story took a strange turn when Eli Regalado addressed the allegations in a video that went viral, portraying the situation as a divine misunderstanding.
Despite having no experience in cryptocurrency trading, Pastor Regalado stated that he was compelled to sell INDXcoin by divine instruction. He emphasized that "God is doing new things and breaking the seal. We are called to do this."
After expressing his initial hesitation, Regalado recalled saying: “God, I don't want to do this. I don't know how to do it. I have no experience in this field. I don't know what to do. I know I don't want to interfere."
However, the results were problematic for investors who bought INDXcoin, as technical glitches prevented them from converting the cryptocurrency into cash, Regalado said. Accepting the failure, he said: “We started the exchange. The exchange technology has failed. Things went down. I know this sounds scary.
He has publicly admitted that he received a lot of money and offered two possible scenarios: either he misheard God or God is still actively working on the project. The defense claims most of the money went to legal expenses, including taxes and home repairs, all at the behest of God.
While some followers continue to show unwavering support for Regalado, others recall his questionable business decisions and history of financial difficulties. Former employees highlight changes in business models, from winning in crowdfunding to creating a cryptocurrency that failed to deliver on its lofty promises.
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