Current:Home > InvestPastor of online church faces fraud charges for selling $3.2 million in "worthless" cryptocurrency-DB Wealth Institute B2 Expert Reviews
Pastor of online church faces fraud charges for selling $3.2 million in "worthless" cryptocurrency
View Date:2024-12-23 23:08:25
A Colorado pastor of an online church is challenging allegations that he and his wife defrauded parishioners out of millions dollars through the sale of cryptocurrency deemed "essentially worthless" by state securities regulators.
Colorado Securities Commissioner (CSC) Tung Chan filed civil fraud charges against Eligo and Kaitlyn Regalado last week in Denver District Court, according to a statement from the Colorado Department of Regulatory Agencies. The complaint accuses the Regalados of targeting members of the state's Christian community, enriching themselves by promoting a cryptocurrency token that the Denver couple launched called the INDXcoin.
The couple allegedly sold the "illiquid and practically worthless" tokens from June 2022 to April 2023 through a cryptocurrency exchange they created called Kingdom Wealth Exchange, Commissioner Chan said in the statement. The sales supported the couple's "lavish lifestyle," he alleged.
Kingdom Wealth Exchange, the only crypto exchange selling the INDX token was inexplicably shut down on November 1, according to the Denver Post.
"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," Chan said.
Pastor says "God was going to provide"
In a nine-minute long video, Regalado acknowledged on Friday that the allegations that he made $1.3 million from investors "are true."
"We took God at His word and sold a cryptocurrency with no clear exit," Regalado said in the video, adding that he had also been divinely instructed to abandon his former business to take over INDXcoin.
"I'm like, well, where's this liquidity going to come from,' and the Lord says, 'Trust Me,'" Regalado said in the video.
"We were just always under the impression that God was going to provide that the source was never-ending," he added.
Regalado did not immediately return CBS MoneyWatch's request for comment.
According to the CSC, the Regalados had no prior experience operating a cryptocurrency exchange or creating a virtual token before minting INDX two years ago. Almost anyone can create a cryptocurrency token, the agency noted in its statement.
There are more than 2 million cryptocurrencies in existence, in addition to 701 cryptocurrency exchanges where investors can trade them, according to crypto markets website CoinMarketCap.
Regalado said in the video that he will go to court to address the allegations against him and his wife. "God is not done with this project; God is not done with INDX coin," he said.
- In:
- Colorado
- Fraud
- Cryptocurrency
- Bitcoin
- Securities and Exchange Commission
Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News' BizTech Unit and worked on The Associated Press' web scraping team.
veryGood! (52)
Related
- 32 things we learned in NFL Week 10: Who will challenge for NFC throne?
- Rare but deadly mosquito disease has New England hotspots warning against going out at night
- Rift between Parkland massacre survivor and some families of the dead erupts in court
- Persistent power outages in Puerto Rico spark outrage as officials demand answers
- Garth Brooks wants to move his sexual assault case to federal court. How that could help the singer.
- I’m a Shopping Editor, and These Are the Doc Martens Shoes Everyone Needs in Their Fall Wardrobe
- Rich Homie Quan, the Atlanta rapper known for trap jams like ‘Type of Way,’ dies at 34
- Atlantic City’s top casino underpaid its online gambling taxes by $1.1M, regulators say
- Skiing legend Lindsey Vonn ends retirement, plans to return to competition
- Caity Simmers, an 18-year-old surfing phenom, could pry record from all-time great
Ranking
- Watch as massive amount of crabs scamper across Australian island: 'It's quite weird'
- Chelsea Lazkani's Husband Jeff Was Allegedly Caught Making Out With Another Woman Before Divorce
- Pennsylvania voters can cast a provisional ballot if their mail ballot is rejected, court says
- Ryan Seacrest vows to keep 'Wheel of Fortune' spinning as new host with Vanna White
- 'Full House' star Dave Coulier diagnosed with stage 3 cancer
- Taylor Swift Arrives in Style to Travis Kelce's First NFL Game Since Kansas City Chiefs' Super Bowl Win
- How Nick Saban became a Vrbo commercial star, including unscripted 'Daddy time in the tub'
- Video shows Green Day pause Detroit concert after unauthorized drone sighting
Recommendation
-
Brianna LaPaglia Addresses Zach Bryan's Deafening Silence After Emotional Abuse Allegations
-
Group Therapy Sessions Proliferate for People Afflicted With ‘Eco-Distress’
-
Sicily Yacht Sinking: Why Mike Lynch’s Widow May Be Liable for $4 Billion Lawsuit
-
Human remains believed to be hundreds of years old found on shores of Minnesota lake
-
Tony Todd, star of 'Candyman,' 'Final Destination,' dies at 69
-
How Travis Kelce does with and without Taylor Swift attending Kansas City Chiefs games
-
Nicole Kidman Shares Relatable Way Her Daughters Sunday and Faith Wreak Havoc at Home
-
Selling Sunset's Chrishell Stause Says She Has Receipts on Snake Nicole Young