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In Colorado, a pastor named Eligio “Eli” Regalado and his wife, Kaitlyn, are currently embroiled in a legal battle over their crypto token venture, INDXcoin. This token was marketed primarily to Christians, with claims that it was divinely inspired. The couple, who ran the online church Victorious Grace, are accused of fraudulently raising approximately $3.2 million through this venture.
The heart of the controversy lies in the claims made by the Regalados regarding INDXcoin. They purported that it was backed by an index of cryptocurrencies and had sufficient assets to support this claim. However, the Colorado Securities Commission has challenged these assertions, alleging that the only backing for the coin was, in fact, “God’s word.”
The case escalated when Colorado’s Securities Commissioner took legal action against the couple, accusing them of deceitful practices and selling securities without the necessary legal permissions. This led to a Colorado judge ordering the freezing of Victorious Grace Church’s assets.
Eli Regalado had previously stated in a community forum for INDXcoin holders that despite expert advice labeling their venture as a security, he believed it to be a utility coin, as supposedly guided by God. This stance was a significant point of contention, given the legal implications of a venture being classified as a security.
After $INDX coin goes live… everybody who purchases $1000 or more worth of $INDX coin on the exchange will receive one! pic.twitter.com/kg6dMOWd5H
— INDXcoin (@indxcoin) February 7, 2023
Kingdom Wealth Exchange: An Elaborate Scam Disguising as a Community Platform
Further complicating matters, the Regalados had control over Kingdom Wealth Exchange, the sole platform for converting INDXcoin to USD. Allegations from Colorado regulators suggest that this platform was periodically shut down to prevent a financial crisis akin to a bank run. Eli Regalado is said to have encouraged investors to hold onto their INDXcoin, citing divine guidance to stay invested.
Despite these claims of divine backing, the Regalados ultimately closed down Kingdom Wealth Exchange, citing a lack of active investors. They continued to urge INDXcoin holders to remain invested and not to question the coin’s stability.
The legal filings reveal that the Regalados allegedly misappropriated $1.3 million of the raised funds for personal expenses, including luxury items, vacations, and home renovations. In a recent video, Eli Regalado admitted to these expenditures but noted that significant portions went to taxes and a home remodel allegedly instructed by God.
The case takes a complex turn considering the Regalados’ defense that their actions were influenced by divine instruction, a point likely to be a focus in the upcoming hearing on January 29. The Colorado Securities Commissioner is expected to elaborate on how the couple may have violated state securities laws. The question of divine intervention in the matter of utility coins remains a unique and challenging aspect of this case.
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