The Wolf in Shepherd's Clothing: The Regalado Crypto Scandal and the Christian Investor
By Danielle Cross // Financial Fraud // EEW Magazine Online
Pictured: Kaitlyn Regalado, Eli Regalado, are facing a civil suit alleging they hawked worthless INDXcoin cryptocurrency to fellow Christians in Colorado, with divine guarantees investors would become rich.
In a sobering revelation from Denver, Colorado, a tale of trust betrayed unwinds as Pastor Eli Regalado and his wife Kaitlyn face civil fraud charges for a cryptocurrency scam that has swept away nearly $3.2 million from about 300 individuals, according to a complaint filed by Colorado Securities Commissioner.
The Regalados, who led a congregation within Denver's Christian community, are accused of convincing their flock that 'INDXcoin' was a God-ordained investment that would yield divine returns. Instead, the state’s securities commissioner has revealed this digital currency to be highly illiquid and essentially worthless, leaving many in financial ruin while the Regalados allegedly indulged in a lavish lifestyle, reports Washington Post.
Eli Regalado has not shied away from these accusations, openly admitting to the misdirected funds and even asserting that certain expenditures, like home renovations, were carried out under divine directive, claiming “the Lord told us to do” it, says NBC News.
Credit: Screenshots/Facebook/Eli Regalado
Despite the current circumstances that leave the Regalados facing serious charges,Eli Regalado holds onto the hope for a miraculous financial turnaround.
This distressing situation serves as a stark reminder of the vulnerability of our communities to affinity fraud, where shared faith is manipulated for financial gain. It is a poignant moment for self-reflection on the importance of vigilance and the wisdom of discernment, especially when matters of finance intersect with our spiritual lives, warns ACAMS Today.
As believers, we are called to "test the spirits to see whether they are from God" (1 John 4:1), so we will not be swayed by those who may misuse the Lord's name for their own ends—whether intentionally or ignorantly. The Scriptures caution us against false prophets who "come to you in sheep's clothing, but inwardly they are ferocious wolves" (Matthew 7:15). Therefore, it is our duty to seek wisdom and understanding, to be like the Bereans who examined the Scriptures daily to see if what they were taught was true (Acts 17:11).
In an age where cryptocurrency and complex investments are increasingly prevalent, it is essential to stay informed and approach every opportunity with caution. Regulatory authorities and consumer protection agencies like the U.S. Department of Justice and the Federal Trade Commission are striving to combat the rising tide of cryptocurrency fraud. We, as a faith community, must also do our part by not only praying for discernment but also by educating ourselves and our congregations about the risks and signs of potential fraud.
