Colorado Pastor and Wife Accused of Crypto Scandal: Unveiling the Alleged Deception

Pastor Eligio "Eli" Regalado and his wife Kaitlyn are facing legal troubles after allegedly misappropriating millions of dollars raised through a crypto token marketed to devout Christians under the guise of divine instruction. The Denver area couple reportedly raised around $3.2 million through sales of INDXcoin, a crypto token issued through their online church, Victorious Grace. However, the Colorado Securities Commissioner filed a lawsuit against the couple this week, accusing them of deceiving investors and unlawfully selling securities without proper registration. As a result, a Colorado judge has frozen the assets of Victorious Grace Church based on these allegations.

Allegations and Legal Filings

• The Regalados claimed that INDXcoin was pegged to a cryptocurrency index and backed by ample assets to secure that peg.
• The Colorado Securities Commission alleges that the coin was essentially backed by nothing tangible except for the Regalados' claims of divine support.
• Despite experts categorizing INDXcoin as a security offering, the couple maintained that it was a utility coin and therefore exempt from securities regulations.
• The Regalados reportedly invoked divine intervention to justify their position, asserting that God deemed INDXcoin a utility coin rather than a security.

Exchange Platform Controversy

• INDXcoin could only be exchanged for USD through the Kingdom Wealth Exchange, a platform controlled by the Regalados.
• Colorado regulators claim that this platform was frequently shut down by the Regalados to prevent a bank run, raising further concerns about the legitimacy of their operations.

The unfolding legal battle between the Regalados and Colorado authorities sheds light on the risks associated with unregulated cryptocurrency offerings and the potential exploitation of investors under the guise of religious conviction.