Colorado pastor Eli Regalado and his wife Kaitlyn are facing civil fraud charges in connection with a cryptocurrency fraud scheme which raised nearly $3.2 million (€2.9m or £2.5m) from 300 people.

According to the state’s securities commissioner, Mr Regalado targeted Christian communities in Denver and claimed that God told him directly that investors would become wealthy if they put money into ‘INDXcoin’.

The regulator says the INDXcoin was, in reality, illiquid and practically worthless, with investors losing millions while the Regalados used funds to support their “lavish” lifestyle.

In a video published on INDXcoin’s website, Mr Regalado says: “The charges are that me and Kaitlyn pocketed $1.3 million. I just wanted to come out and say those charges are true.”

He adds: “A few hundred thousand dollars went to a home remodel the Lord told us to do. We took God at his word and sold a cryptocurrency with no clear exit.

“What we’re believing for still is that God is going to do a miracle. God is going to work a miracle in the financial sector.”

The pair will appear before Denver District Court next week.