US Online Pastor Charged with Civil Fraud Over “Practically Worthless” Cryptocurrency

US Online Pastor Charged with Civil Fraud Over "Practically Worthless" Cryptocurrency

VoM News Desk | January 24, 2024 | 01:29 PM IST | United States of America, World | Follow on Google News

US Online Pastor Charged with Civil Fraud Over “Practically Worthless” Cryptocurrency

US Online Pastor Charged with Civil Fraud Over “Practically Worthless” Cryptocurrency

Colorado’s securities commissioner has filed civil fraud charges against Eligio Regalado and his wife Kaitlyn Regalado, accusing them of selling a cryptocurrency, INDXcoin, described as “practically worthless.” The couple allegedly raised $3.2 million by targeting Colorado’s Christian community through their cryptocurrency exchange, Kingdom Wealth Exchange. The securities commissioner highlighted that the tokens were “illiquid and practically useless.” The Regalados are accused of violating Colorado’s anti-fraud, licensing, and registration laws, with the sales allegedly supporting their “lavish lifestyle.”

Pastor Admits Allegations in Video Message

In response to the allegations, Pastor Eligio Regalado acknowledged in a video message that the allegations of making $1.3 million from investors are true. He claimed that he sold a cryptocurrency with no clear exit, based on divine instructions. The pastor expressed the belief that God would provide a never-ending source of liquidity. The Regalados, without prior experience in cryptocurrency, created INDX two years ago, leading to technical failures that prevented investors from converting the cryptocurrency into cash.

Regulators Warn of Risks in Cryptocurrency Investments

Regulators, including Colorado’s securities commissioner, Tung Chan, emphasized the ease of creating new cryptocurrencies and exchanges, urging consumers to be skeptical. The case highlights the risks associated with investing in cryptocurrencies and the need for regulatory scrutiny in the rapidly evolving digital asset space.

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