A pastor in Denver who stated that God advised him to promote cryptocurrency that might not be cashed is going through civil expenses, alongside together with his spouse, for advertising a digital coin that prosecutors stated was “virtually nugatory” and utilizing the proceeds to help a “lavish life-style.”
The pastor, Eligio Regalado, and his spouse, Kaitlyn Regalado, have been charged on Thursday in a civil criticism filed in Denver District Court docket by the Colorado Lawyer Normal’s Workplace, the Colorado Division of Securities said in a statement. The company stated that the couple created, marketed and offered a cryptocurrency that they referred to as INDXcoin via a cryptocurrency alternate, which additionally they ran.
Prosecutors stated that the couple, who had no expertise in cryptocurrency exchanges, marketed the INDXcoin to Christians in Denver, and raised practically $3.2 million from greater than 300 individuals who purchased it from June 2022 to April 2023. Mr. Regalado and his spouse then used the cash for themselves, the Colorado Division of Securities stated.
Mr. Regalado and Ms. Regalado didn’t instantly reply to requests for touch upon Tuesday. It was unclear whether or not they had a lawyer.
In a video addressing the complaint final week, Mr. Regalado stated that he didn’t need traders to be “mad” on the prosecutors.
“They’ve to do that,” he stated. “I imply, if you consider this: We offered a cryptocurrency with no clear exit. We did. We took God at his phrase and offered a cryptocurrency with no clear exit.”
Mr. Regalado stated that due to issues with the cryptocurrency alternate, traders couldn’t take their cash out.
Mr. Regalado additionally stated within the video that he went into the cryptocurrency enterprise as a result of “the Lord” advised him to. He stated that God had as soon as come to him a dream and requested him to take action, and he accepted that he and his spouse spent the funds in “a house rework that the Lord advised us to do.”
Mr. Regalado stated that he nonetheless hoped that traders might get their a refund, and that he believed “God goes to work a miracle within the monetary sector.”
Commissioner Tung Chan of the Colorado Division of Securities stated in an announcement that “Mr. Regalado took benefit of the belief and religion of his personal Christian neighborhood.”
“He peddled outlandish guarantees of wealth to them when he offered them basically nugatory cryptocurrencies,” Ms. Chan stated.
The Colorado Lawyer Normal’s Workplace declined to remark, citing the continued litigation.
Mr. Regalado led the Victorious Grace Church, based on data. A web site for the church had been taken down as of Tuesday. Mr. Regalado additionally stated within the video that in 2021 “the Lord” advised him and his spouse to step away from a advertising firm they have been working to start out a “new factor.”
Of the greater than $3 million that the couple had raised via INDXcoin, Mr. Regalado stated that he and his spouse pocketed about $1.4 million. About $500,000 of the cash went to the Inside Income Service, and “a couple of hundred thousand {dollars}” went towards the house rework.
About 9 months in the past, Mr. Regalado stated, the enterprise “began falling aside,” including that he didn’t know what he was doing.
“Certainly one of two issues have occurred,” Mr. Regalado stated, “One: Both I misheard God and each one among you who prayed and got here in, you as effectively, or two: God remains to be not completed with this venture and he’s going to do a brand new factor.”
Prosecutors stated they have been looking for damages to assist restore losses to traders. Mr. Regalado stated within the video that the couple deliberate to argue their case, and that their “aim” was for traders to get a number of the a refund.
