Learn about Eli and Kaitlyn Regalado, a pastor couple from Colorado, who raised $3.2 million through a cryptocurrency, INDXcoin, claiming it was divinely inspired.
Charged with securities fraud, their story underscores the need for vigilance in the volatile world of cryptocurrency.
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A Divine-Inspired Cryptocurrency?
In Colorado, USA, a pastor couple, Eli and Kaitlyn Regalado, have been charged with securities fraud by the Colorado Securities Commission. This follows their issuance of a cryptocurrency named "INDXcoin," which they claimed was created following a divine revelation.
According to multiple media reports, the couple raised about $3.2 million from various investors through their online church, Victorious Grace, by selling INDXcoin.
They claimed that investing in INDXcoin would lead to greater financial gains than anything investors had previously experienced in their lives.
Additionally, Eli Regalado was reported to be the founder of the only cryptocurrency exchange where INDXcoin could be traded, named "Kingdom Wealth Exchange." Both INDXcoin and Kingdom Wealth Exchange were shut down on November 1, 2023.
The Rise and Fall of INDXcoin: A Case of Securities Fraud
The Colorado Securities Commission has accused the pastor couple of deceiving investors and illegally selling securities without proper registration, leading to the freezing of assets of the Victorious Grace Church.
While the pastors maintained that INDXcoin was a utility token pegged to a virtual currency index and backed by sufficient assets, the Commission countered that INDXcoin was largely unsupported by anything other than the word of God, constituting a misuse of investor trust and amounting to securities fraud.
Reports indicate that the pastors assured investors that God intended for them to stay with INDXcoin, expressing a firm belief in an impending miracle. However, regulatory authorities have dismissed any possibility of such a miracle occurring.
It is reported that out of the $3.4 million raised through the sale of INDXcoin, approximately $1.3 million was used by the pastors for personal entertainment.
This included spending on luxury handbags, jewelry, cosmetic dentistry, snowmobiles, home renovations, and lavish vacations.
A Cautionary Note for Cryptocurrency Investors
The cryptocurrency industry is rife with fraudulent coins aimed at swindling money from investors. The continuous diversification of such fraudulent activities necessitates cautious and thorough research by investors before making any investment.
>> For the latest articles on related frauds, click here.
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