This story was originally published by the WND News Center.
A Christian pastor says he's banking on a miracle after being accused of pocketing $1.3 million in a cryptocurrency scheme, claiming "the Lord told us to."
The Colorado Division of Securities says Eli Regalado and his wife Kaitlyn marketed their cryptocurrency, INDXcoin, to Christian communities in Denver, claiming "God told him directly that investors would become wealthy if they put money into INDXcoin."
The state says: "The Regalados had no experience in cryptocurrency which was clear when a third-party auditor's report allegedly described their INDXcoin code as unsafe, unsecured, and riddled with serious technical problems. Despite that report, the Regalados allegedly continued to promote the INDXcoin as a low-risk, high-profit investment."
The complaint alleges that in reality, the INDXcoin was illiquid and practically worthless, investors lost millions, and defendants dissipated investor funds to support their lavish lifestyle.
"We allege that Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies," said Colorado Securities Commissioner Tung Chan.
"New coins and new exchanges are easy to create with open-source code. We want to remind consumers to be very skeptical."
"They specifically went out to the Christian community, and there's a lot of references to scripture and faith. He cloaks himself in that to get people to give their money to him," said Chan. "That's really heartbreaking for the people who trusted him."
In a video statement to followers posted last week, Eli Regalado said the allegations they pocketed $1.3 million "are true."
"Out of the $1.3 [million], half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel the Lord told us to do," he said.
According to the complaint, the couple also allegedly spent investors' funds on a Range Rover, luxury handbags, jewelry, an au pair, boat rentals, and snowmobile adventures.
"We took God at His word and sold a cryptocurrency with no clear exit," Regalado said in his video Friday. "What we're believing for still is that God is going to do a miracle. God is going to work a miracle in the financial sector."
NBC News reported: "Regalado was 22 and serving a prison sentence for 'boosting cars' when his faith called him to become a pastor 20 years ago, he said in a YouTube live podcast. He began preaching for the online-only Victorious Grace Church, where he and his wife are listed as the only two employees."
Eli Regalado, his wife, and his three companies face charges of securities fraud, unlicensed broker-dealer activity, selling unregistered securities, and imposition of constructive trust.
Reacting to the video, the Regalados had voices of support, including:
"What a crazy ride Eli. I can't imagine what you guys are going through. Prayers going up."
"Good job coming forward. Can't gossip about rumors when everyone already knows the truth. And, yes, God is not done and He will do a new thing. Hang in there, stay strong, and lean on each other."
But one commenter with a username of "God" indicated: "Yes, I work in mysterious ways. This Regalado schmuck though, is not so mysterious at all. Mystery solved, annnnnd ... guilty."
