Colorado pastor and wife indicted in $3.4M crypto scam

7 hours ago

The pastor claimed that “God told” him to shill INDXcoin, which caused fiscal losses to astatine slightest 300 investors.

Colorado pastor and woman indicted successful $3.4M crypto scam

A Denver, Colorado-based online pastor and his woman were indicted Tuesday connected charges related to a cryptocurrency fraud strategy that raised much than $3 cardinal from faith-based investors.

Online pastor Eli Regalado and his wife, Kaitlyn, were indicted connected 40 counts stemming from what Denver District Attorney John Walsh described arsenic a “multi-million-dollar cryptocurrency scam.”

Between January 2022 and July 2023, the Regalados allegedly solicited astir $3.4 cardinal by encouraging radical successful their spiritual web to bargain INDXcoin, a token they created and sold done the Kingdom Wealth Exchange platform.

They spent astatine slightest $1.3 cardinal connected idiosyncratic expenditures, including a location renovation that they claimed “the Lord” told them to do, portion lone a tiny magnitude of the proceeds went to the concern venture.

According to the indictment, astatine slightest 300 radical invested successful the token, which authorities accidental “maintained zero value,” resulting successful full losses for each investors.

“These charges people a large measurement guardant successful our enactment to clasp the Regalados accountable for their alleged crimes and to bring a measurement of justness to the victims,” said Denver District Attorney John Walsh successful a Tuesday press release, adding:

“I privation to convey the prosecutors and investigators successful my office, and, particularly, the investigators with the Colorado Division of Securities and the Colorado Attorney General’s Office, whose outstanding enactment connected the lawsuit resulted successful this indictment.”

Pastor claims divine guidance

The indictment comes six months aft the Colorado-based online pastor and his woman were charged with fraud for their relation successful issuing and selling the INDXcoin scam token to their followers, Cointelegraph reported connected Jan. 22.

“We allege that Mr. Regalado took vantage of the spot and religion of his ain Christian assemblage and that helium peddled outlandish promises of wealthiness to them erstwhile helium sold them fundamentally worthless cryptocurrencies,” stated Colorado Securities Commissioner Tung Chan astatine the time, adding:

“The ailment alleges that Regalado targeted Christian communities successful Denver and claimed that God told him straight that investors would go affluent if they enactment wealth into INDXcoin.”

Cryptocurrency scams are a increasing contented for retail investors. In May, an FBI-led probe led to the apprehension of a New Zealand-based antheral who allegedly stole $265 million worthy of integer assets.