An American pastor was accused of collecting billions of won in investment funds and stealing a significant amount of money by selling virtual currency to believers, claiming to have received a revelation from God. According to the Colorado Department of Securities Regulation on the 28th, authorities recently filed a civil fraud lawsuit against Elio and Caitlin Regalado and INDX Coin Ltd., which they founded, for allegedly violating anti-fraud, licensing, and registration regulations under the Securities Act.
Pastor Regalado said in a YouTube video in April last year, “After several months of prayer, I received a revelation from God,” and “We are installing rails for God’s wealth transfer,” and created the virtual currency ‘Index’. INDX) coin. They even established a virtual currency exchange called ‘Kingdom Wealth Exchange’ and allowed believers to purchase INDX coins through it.
Investigators from the Colorado Securities Authority determined that they had attracted $3.2 million in investments from about 300 people over a period of about 10 months. The authorities said, “The INDX coins they created are illiquid and have virtually no value,” and added, “Investors suffered millions of dollars in losses.”
It was discovered that the Regalado couple squandered a significant amount of their investment money to maintain a luxurious lifestyle. CNN reported that they spent $1.3 million on buying expensive cars and jewelry, going on luxurious trips, and remodeling their homes. “There are allegations that Kaitlyn and I pocketed $1.3 million, and I want to come out here and say those allegations are true. We are doing what the Lord told us to do,” Regalado said in an online video posted after authorities filed the lawsuit. “Several $100,000 was spent on remodeling the house,” he admitted. But he said, “I either heard God wrong or God is not done with this project yet and is going to do something new. What we prayed for and still believe is that God will work a miracle.”
“Regalado took advantage of the trust and faith of his Christian community to sell them inherently worthless cryptocurrencies while promising them exorbitant wealth,” said Colorado Securities Commissioner Tung Chan. “It is easy to make, so consumers should be very careful,” he emphasized.