Denver pastor Eli Regalado, who is currently facing a lawsuit filed by Colorado’s securities commission for allegedly defrauding investors through the sale of the valueless INDXcoin cryptocurrency, has released a video responding to the allegations.
In the video, Regalado admits that investors are unable to cash out their funds and explains the challenges they have faced with their failed exchange technology.
He claims to have been waiting for a miracle from God to resolve the situation.
“We launched an exchange, the exchange technology failed, things went downhill, and from that point forward we’ve just been waiting on the Lord literally for a miracle.”
Both Regalado and his wife, Kaitlyn, identify themselves as ordained ministers with Destiny Churches and Ministries International, as stated on their online-only Victorious Grace Church’s Facebook page.
Destiny Churches, with 1,000 followers, has promoted INDXcoin on its own Facebook page.
The Regalados are accused of using INDXcoin funds for personal expenses, such as a Range Rover, jewelry, luxury handbags, while falsely claiming the funds would go towards helping widows and orphans.
In the video, Regalado confirms the charges against him, admitting that he and his wife pocketed $1.3 million.
He explains that a significant portion of the funds, including half a million dollars, was paid to the IRS, and a few hundred thousand dollars were used for a home renovation that they believed was instructed by God.
Regalado expresses hope for a divine miracle that will make investors whole, emphasizing that they sold a cryptocurrency with no clear exit strategy.
He acknowledges that the prosecutors will argue that they knowingly sold a cryptocurrency without a clear exit plan, but he remains optimistic that God will work a miracle in the financial sector, bringing a breakthrough for INDXcoin.
He believes that everyone who invested will eventually be able to receive their money back.
Investor Comments Are Supportive of Regalado
The comments under the video are largely supportive of Regalado, praising his courage for addressing the situation and expressing faith in God’s guidance.
One commenter declares that God will receive all the glory in this situation, to which Regalado responds with agreement.
“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,” another commentator wrote.
Following the civil complaint, Judge David Goldberg has frozen the bank accounts of the Regalados and their associated businesses at the request of state regulators.
The couple is scheduled to appear in Colorado District Court on January 29th for an initial hearing in response to the charges brought against them.
Last year, the SEC asked a judge to decide whether certain cryptocurrencies qualify as securities in its ongoing lawsuit against blockchain company Terraform Labs.
More recently, in the SEC and Coinbase case, a federal judge questioned whether allowing the commission to impose its regulations on Coinbase would give the agency sway over markets it doesn’t have authority to supervise.
“I want to understand how your standard does not sweep in the collectible market or commodities,” U.S. District Judge Katherine Polk Failla told SEC lawyers in the courtroom.
“It is a real fear that I have that your argument is just sweeping too broadly.”
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