Denver Pastor Charged in Crypto Scheme ‘Misheard God’

The Denver pastor who faces charges over an alleged multi-million dollar cryptocurrency scheme said in a video to his congregation this week that he might have “misheard God,” The Washington Post reported.

Colorado Securities Commissioner Tung Chan announced civil fraud charges earlier this month against Eligio Regalado, also known as Eli, and his wife, Kaitlyn Regalado, over INDXcoin, the cryptocurrency they created, marketed, and sold to congregants.

According to the complaint, Regalado targeted members of Denver’s Christian community, telling them that God directly spoke to him and said investors would become rich if they bought INDXcoin, eventually making almost $3.2 million off of more than 300 people.

The complaint also contends that an independent audit shows the cryptocurrency was “essentially worthless,” and alleges that the Regaldos used the money to enhance their own lifestyle while their investors lost millions.

“We allege that 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 in a statement. “New coins and new exchanges are easy to create with open-source code. We want to remind consumers to be very skeptical.

“New coins and new exchanges are easy to create with open-source code. We want to remind consumers to be very skeptical.”

Eligio Regalado this week pushed back on the allegations in a video statement.

“Out of that $1.3 (million), half a million dollars went to the IRS, and a few hundred thousand dollars went to a home remodel that the Lord told us to do,” Regalado said. “Either I misheard God … or God is still not done with this project, and He is going to do a new thing.

“What we’re praying for, and what we’re believing for still, is that God is going to do a miracle. God is going to work a miracle in the financial sector … [and that] everyone [who invested] … is going to be able to receive money back.”