The Rise and Fall of Eli Regalado: The Crypto Pastor Scam
In the digital age of finance, the term "crypto" can attract both innovation and intrigue; however, it can also serve as a cloak for deceitful schemes. This was the case for Eli Regalado, a man who dubbed himself the "Crypto Pastor." Regalado is facing serious legal trouble, accused of diverting $1.3 million from unsuspecting investors in a fraudulent cryptocurrency scheme, with the façade of divine inspiration.
Criminal Background
Regalado’s current troubles are underscored by a troubling history of legal issues. Before his foray into cryptocurrency, he spent time in a Colorado prison for stealing cars. He has been found guilty of theft and other offenses throughout the years, including third-degree assault, driving under the influence, and aggravated motor vehicle theft. Described by one of his ex-wives as a “con man” and “scammer,” he seems to have a long history of manipulating those around him.
Legal Developments
Recently, Regalado and his current wife, Kaitlyn, faced 40 counts related to racketeering, theft, and securities fraud after a grand jury in Denver indicted them. The couple reportedly solicited $3.4 million from around 300 investors, many of whom were part of their online congregation, Victorious Grace Church.
Contacted by CBS News Colorado, Regalado stood firm in his faith, stating, "Our God whom we serve will deliver us," though he refrained from elaborating further on the details of the case.
Voices of the Past: Ex-Wives Speak Out
Nicole Brown, one of Regalado’s ex-wives, painted a vivid picture of the man she was married to from 2017 to 2020. Initially, she described him as "charming" and "charismatic," but claimed this persona crumbled soon after they eloped, a decision he coerced her into.
"He would tell me, ‘If you don’t marry me, you don’t love me,’" she recounted, emphasizing feelings of manipulation. After they wed, she remarked that “the mask slipped,” revealing a different, abusive side of Regalado. Brown noted a significant shift as Regalado engaged in more manipulative behaviors, becoming increasingly aggressive, throwing things, and hurling insults.
A Religious Pivot
Interestingly, Brown revealed that Regalado was not particularly religious at the time of their marriage. She noted how he seemed to adapt his personal narrative to attract a broader audience: "He just thought, I’m going to pivot and now I’m going to believe in God." According to her, he shifted from being someone interested in marketing startups to adopting a religious facade to lure in followers and investors.
“He was all about get-rich-quick,” Brown described, asserting that Regalado was adept at spinning tales to extract money from people, claiming that “God was talking to him.”
The Crypto Scheme Unfolds
In 2022 and 2023, Regalado aggressively marketed a cryptocurrency plan, enticing potential investors with promises of "exorbitant" returns, claiming divinely inspired revelations that urged him to pursue this venture.
Believing he would lead them to riches, investors were swept up by the religious undertones swathed throughout his marketing materials. However, the promised returns never materialized; instead, Regalado admitted to diverting over $1.3 million into personal expenses, including luxury vacations, designer shoes, and even renovations on their home—actions he justified as part of divine instructions.
In a video, Regalado openly acknowledged, "The charges are that me and Kaitlyn pocketed $1.3 million… I just wanted to come out and say those charges are true."
Regrets from Investors
Many of Regalado’s investors now regret their decisions. One man, who entrusted Regalado with $10,000, expressed deep disappointment, reflecting on the importance of conducting thorough due diligence in such matters. Another investor mentioned feeling uneasy about the religious messaging used to garner trust, while a third, a long-time acquaintance of Regalado, echoed sentiments of disbelief over the situation.
A woman from out of state, who had known Regalado since childhood, noted how the fallout from this failed venture could erode faith in the community. "It makes people not believe in God anymore and that’s sad," she said, underscoring the personal and communal repercussions of Regalado’s actions.
Analyzing the Scheme
Experts have highlighted that religion played a pivotal role in enticing individuals into Regalado’s scheme. Mriganka Pattnaik, CEO of Merkle Science, indicated that evidence suggested it was more about exploiting people than a legitimate cryptocurrency failure.
According to Pattnaik, “It’s highly likely they were using this as a mechanism to deceive people,” asserting that Regalado and his wife lacked the necessary expertise to execute the cryptocurrency transactions they promised.
Civil Rulings
Compounding his legal challenges, a Denver judge recently ruled against Eli and Kaitlyn Regalado in a civil action initiated by the Colorado Securities Commission, which described them as "21st-century false prophets." The court entered a $3.3 million judgment against them, echoing sentiments of betrayal felt by their investors.
Nicole Brown robustly criticized Regalado, calling him a “snake oil salesman” and expressing hope that he receives significant prison time for his actions. Her anguish reflects not just personal betrayal but the broader impact on those caught in Regalado’s web of deceit.
Final Thoughts
Eli Regalado’s story serves as a cautionary tale about the intersection of faith and finance in today’s digital landscape. The lure of quick profits embedded in confidence and belief can sometimes lead to the most significant betrayals. As authorities continue their investigations, the ramifications of this scandal are sure to ripple throughout the community and beyond, raising important questions about the ethical responsibilities of those wielding the power of influence.
