Good day everyone,
I hope you are all well and had an excellent weekend, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at the ongoing case of a Pastor from Colorado who is accused of stealing money via a cryptocurrency project both himself and his wife created.
$3 Million Crypto Fraud
The Colorado pastor at the centre of a cryptocurrency scandal, along with his wife, have both been barred from selling crypto in the state and will continue to have their accounts frozen by regulators. This comes after the judge presiding over the case made this ruling in the last week, with the couple accused of orchestrating a $3 million crypto fraud scheme.
Last Pastor Eli Regalado and his wife Kaitlyn Regalado were charged with fraud by the Colorado Division of Securities after it was discovered the couple had pocketed $1.3 million from their crypto venture. The Regalados had launched their own cryptocurrency known as INDXcoin and it was available through their 'Kingdom of Wealth' exchange. This was known as a faith based crypto exchange.
A press release from the Colorado Division of Securities read:
“Regalado targeted Christian communities in Denver and claimed that God told him directly that investors would become wealthy if they put money into INDXcoin.”
The Regalados raised over $3.2 million as part of their venture, with 300 people being the main contributors to their scheme. The prosecutors noted in the Denver Post that the husband and wife duo ended up spending a large portion of the funds on a Range Rover, home renovations, cosmetic dentistry, and more.
The couple were fully aware that their INDXcoin was basically worthless and a report by Hacken noted that INDXcoin code was “unsafe, unsecure and riddled with serious technical problems.” They also gave it a rating of 0 out of 10. Even though the report called out the scam nature of the token, the couple maintained their stance that it was legitimate and continued to promote INDXcoin as a low-risk and high-profit investment.
A video was posted on the INDXcoin website, which has since been deleted, and in it Eli Regalado basically admitted to the charges both himself and his wife are facing. He noted:
“So the charges are that Kaitlyn and I pocketed $1.3 million, and I just want to come out and say that those charges are true."
Eli went on to claim that $500,000 from the money they took went to the IRS, while they ended up spending 'a few hundred thousand' on the renovation of their home. Eli stated that they did so because the Lord told them to. He also noted that “God is not done with this project." and “God is not done with INDXcoin.”
Neither of the accused were present during Monday's hearing and Denver istrict Court Judge David Goldberg said:
“This case is a sad case for me. It’s one of the more egregious cases I have seen where someone in the name of faith, the name of God, preyed upon his congregants, and he did so in the name of the Lord.”
Have a great day.
Peace. CryptoGod-1.
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