Despite having no prior experience in the world of cryptocurrencies, the Christian leader stated that he was inspired by the idea that “God is in the business of making new things and breaking seals.”
An online pastor, known as Eligio Regalado or Eliand his wife, Kaitlyn Regalado, face accusations of civil fraud after the sale of a cryptocurrency that regulators considered “practically worthless“.
The securities commissioner of Colorado, United States, filed a legal complaint last week against the couple, who managed to raise around $3.2 million from the Christian community of Denver with the cryptocurrency called INDXcoin.
According to investigators, the couple violated Colorado laws related to fraud, licensing and registration by promoting cryptocurrency as a “low-risk, high-profit investment”, when in fact it was “illiquid and practically useless.” The investors, who are around 300 faithful of the Christian community, lost millions of dollars while the couple used the funds to maintain their lavish lifestyle, the complaint alleges.
What did the crypto scammer say?
Pastor Regalado, in his defense, argued that God ordered him to create the cryptocurrency. However, he admitted that there is a possibility that he “misheard” the divine message. In a video messageRegalado revealed that they made $1.3 million from the sale of INDXcoin and spent part of those funds on a remodel of their housejustifying that it was a divine indication.
Despite having no prior experience in the world of cryptocurrencies, Regalado stated that he was inspired by the idea that ““God is in the business of making new things and breaking seals.”. However, he admitted his lack of knowledge in the industry and his initial reluctance to embark on this project.
Problems arose when investors They were unable to convert the cryptocurrency into cash due to technical glitches on the exchange launched by the couple. In the wake of these issues, Regalado urged investors not to be dominated by the pursuit of money and suggested eliminating negative conversation from the community.
The Colorado securities commissioner stressed that the Regalados lacked cryptocurrency experience, evidenced by a report from a third-party auditor that described INDXcoin’s code as insecure and plagued by serious technical problems. Given this situation, the commissioner advised consumers to be very skeptical about new currencies and new exchanges, reminding them of the importance of caution in this space.
Source: Ambito
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