Religious leaders face fraud charges over crypto scheme

The Colorado Attorney General’s Office has filed a lawsuit against the founders of cryptocurrency INDXCoin, alleging they fraudulently used congregation investments for personal gain.

Eli and Kaitlin Regalado, founders of INDXCoin and prominent religious leaders, are facing allegations of fraud, as stated in a lawsuit by the Colorado Attorney General’s Office. The lawsuit accuses the couple of using investment funds from their congregation for personal expenses, including home renovations.

An online pastor launched a cryptocurrency called INDXcoin.

He promised churchgoers that purchasing the coin would grant them “a miracle in very short order.”

He then pocketed $1.3M, bought a Range Rover, and spent a couple hundred thousand dollars on a home remodel “the… pic.twitter.com/Qb6z1i2fc1

— Milk Road (@MilkRoadDaily) January 22, 2024

INDXCoin, originally marketed as a utility coin linked to the top 100 cryptocurrencies, has now come under scrutiny as the Attorney General’s complaint alleges that Eli Regalado, a pastor, specifically targeted Christian communities in Denver, promising divine financial rewards for investing in INDXCoin.

The lawsuit further highlights the Regalados’ lack of experience in cryptocurrency, leading to INDXCoin becoming “illiquid and practically worthless,” according to Colorado Securities Commissioner Tung Chan.

In a video, Eli Regalado admitted to diverting $1.3 million of invested funds, specifying that a significant portion was used for home remodeling, as instructed by God. Despite acknowledging these expenditures, Regalado intends to contest the fraud charges in court, relying on his faith for a financial miracle to reimburse investors.

If found guilty, the INDXCoin case could be seen as a modern twist on an age-old scam, adapting the traditional fraudulent investment scheme to the digital age.