Commissioner Tung Chan of the Colorado Division of Securities said in a statement that “Mr. Regalado took advantage of the trust and faith of his own Christian community.”
“He peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” Ms. Chan said.
The Colorado Attorney General’s Office declined to comment, citing the ongoing litigation.
Mr. Regalado led the Victorious Grace Church, according to records. A website for the church had been taken down as of Tuesday. Mr. Regalado also said in the video that in 2021 “the Lord” told him and his wife to step away from a marketing company they were running to start a “new thing.”
Of the more than $3 million that the couple had raised through INDXcoin, Mr. Regalado said that he and wife pocketed about $1.4 million. About $500,000 of the money went to the Internal Revenue Service, and “a few hundred thousand dollars” went toward the home remodel.
About nine months ago, Mr. Regalado said, the undertaking “started falling apart,” adding that he didn’t know what he was doing.