In a shocking turn of events in the crypto world, a Denver pastor and his wife are facing serious allegations of running a crypto scam. Colorado state regulators have filed a civil lawsuit against Eli Regalado and his wife, Kaitlyn, claiming they misused funds from their cryptocurrency, INDXcoin. But here’s where it gets interesting: the pastor claims his spending was divinely inspired. Let’s dive into the details of this unfolding saga.
Colorado Regulators Sue Pastor and Wife Over Crypto Scam Allegations
The lawsuit alleges that Eli and Kaitlyn Regalado cashed out over $1.3 million worth of INDXcoin. Instead of using the funds as promised, regulators say they financed a lavish lifestyle. This included home renovations, jewelry, and luxury vehicles. The state regulators are taking this case very seriously. They want to ensure investors are protected from fraudulent schemes.
Pastor Admits to Spending, Claims ‘God Told Me To’
In a surprising response, Pastor Eli Regalado admitted to cashing out the funds. However, he claims half went to the IRS, and the rest was used for a home remodel that he says was ordered by God. This defense has raised eyebrows and added a bizarre twist to the case.
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How Did This Crypto Scam Allegedly Work?
The allegations revolve around INDXcoin, a cryptocurrency promoted by the Regalados. Investors currently can’t cash out their investments. Regalado attributes this to the failure of the exchange technology used for INDXcoin transactions.
According to Regalado, the exchange technology failed, and they are waiting for a miracle from God. Despite the legal issues, the Regalados claim to be ordained ministers with an online church called Victorious Grace Church. Destiny Churches has also promoted INDXcoin on its Facebook page.
Lavish Spending or Legitimate Expenses?
Colorado state regulators accuse the Regalados of using INDXcoin funds for a lavish lifestyle. They allegedly spent the money on a Range Rover, jewelry, and luxury handbags. At the same time, they assured investors their contributions would support causes aiding widows and orphans.
In a video response, Pastor Eli Regalado stated that the charges that he and Kaitlyn pocketed $1.3 million are true. He clarified that half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel the Lord told them to do.
Hopes for Divine Intervention: A Realistic Solution?
Despite admitting to the financial transactions, Pastor Regalado hopes for a divine miracle to rectify the situation for investors. He acknowledges the lack of a clear exit strategy for INDXcoin and the challenges faced by prosecutors.
He said in the video that they’re praying for God to work a miracle in the financial sector and bring a miracle into INDXcoin so that everyone who invested will be able to receive their money back.
Comments on the video have been largely supportive, with many expressing belief in divine intervention. One commenter said that God is leading all of them and will get all the glory, to which Regalado responded that they agree 100%.
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Legal Actions and Frozen Bank Accounts: What’s Next?
In response to the civil complaint, Judge David Goldberg has frozen the bank accounts associated with the Regalados and their businesses. This aims to preserve assets pending the lawsuit’s resolution.
The Regalados are scheduled to appear in Colorado District Court for an initial hearing on January 29th. The outcome of this case remains uncertain, and INDXcoin investors face uncertainty about their investments.
The Regalados’ reliance on divine intervention adds a unique dimension to this ongoing legal saga.
In Summary
- Colorado regulators are suing Pastor Eli Regalado and his wife, Kaitlyn, over allegations of a crypto scam involving INDXcoin.
- The couple allegedly cashed out over $1.3 million, spending it on luxury items and a home remodel.
- Pastor Regalado admits to the spending but claims it was divinely inspired.
- Legal actions are underway, with bank accounts frozen and a court hearing scheduled.
- The case highlights the risks in the crypto market and the importance of regulatory oversight.
The situation is still unfolding. It serves as a cautionary tale for investors in the volatile world of cryptocurrency. It also raises questions about the intersection of faith and finance.
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