Pastor Charged With Stealing Millions Seen in Zambia After Missing Hearing

Denver pastor Eligio (Eli) Regalado, facing civil fraud charges for allegedly selling millions in a bogus cryptocurrency scheme, was seen in Zambia teaching about God and finance at the Gifted Faith Ministry in the country's capital after missing a court hearing on Monday.

Regalado's appearance at the church's Glory Shift Conference on multiple days this week comes after he missed a Monday court hearing in Denver, Newsweek confirmed, where a preliminary injunction and asset freeze were granted after he was accused of exploiting his religious influence to defraud investors.

The civil fraud case against Regalado, brought last week by Colorado Securities Commissioner Tung Chan, centers on INDXcoin, a cryptocurrency he and his wife Kaitlyn created and marketed to his Christian community in the U.S., promising divine financial returns.

According to the complaint, Regalado and his wife raised about $3.2 million through INDXcoin between June 2022 and April 2023 in a Ponzi-style scheme involving more than 300 people that left INDXcoin holders with no way to sell the coins, rendering their investments worthless.

Despite facing civil charges that can potentially boil over to criminal charges leveled by the state of Colorado, Regalado on Monday delivered a sermon in the African church focusing on financial prosperity and cryptocurrency.

Drawing parallels between multiple Bible verses and wealth, the embattled pastor said: "I'm going to speak to you today and I am going to speak to you about finances, and I'm going [to] speak to you about how to make money the Kingdom way."

Eventually, Regalado touted the fact that God has gifted him with a "whole world of cryptocurrency," but promised to "spare" the crowd the details.

The details of the lawsuit brought by the Colorado Division of Securities allege that much of the $3.2 million worth of INDXCoin sold to investors was funneled into the Regalados' personal expenses, with more than $1.3 million being misappropriated, which he confirmed in a video that was initially posted to the INDXCoin forum that has since been widely circulated.

"The charges are that Kaitlyn and I pocketed $1.3 million and I just want to come out and say that those charges are true," Regalado said in the video posted by user GuruLeaks1 on X, formerly Twitter. "There has been $1.3 million that has been taken out of, I think it was a total of $3.4 million. But out of that $1.3 [million], half of 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."

Despite claiming a divine directive for the INDXCoin project, the couple lacked the necessary experience and credentials in cryptocurrency, the Colorado Securities Commissioner said, leading to an insecure and technically flawed INDXcoin.

The court's preliminary injunction has prohibited the Regalado's from selling any securities while freezing the couple's assets as well as mandated an order for non-destruction of records.

"Misuse of funds is a serious charge in this matter," Chan said in a statement shared with Newsweek by email. "Freezing assets will protect what's left in the accounts from further dissipation, and the injunction will stop the Regalados from selling any more worthless coins."

Newsweek has reached out to the Colorado District Attorney's Office by email for comment.