The Denver District Court has issued a ruling requiring a local pastor and his wife to return over $3.3 million to investors after finding they violated state financial laws through a church-themed cryptocurrency offering.
According to a press release published on September 16, the court determined that Eli and Kaitlyn Regalado used their religious platform to promote INDXcoin.
According to findings presented at a bench trial in May, they collected funds from more than 590 investors, 509 bought INDXcoin and 87 purchased Sumcoin.
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The couple told supporters that God had instructed them to develop and sell the token. They also assembled a group known as the “Prophetic Team”, which joined regular prayer calls to provide spiritual guidance on the direction of INDXcoin and a related crypto platform called Kingdom Wealth.
Judge Kutcher found that INDXcoin qualified as a security under Colorado’s laws. The couple had falsely presented the token as a safe investment and promised potential profits, despite it not being listed on cryptocurrency exchanges. The judge said:
INDXcoin was worthless because no one wanted to buy it.
Although platforms such as Bitget
$4.99B
Financial records showed that the Regalados directed investor money into personal use. At least $1.3 million was spent on luxury goods, vacations, cars, home renovations, and church-related expenses.
On September 9, the US Department of Justice took legal steps to claim over $12 million in Tether
