Denver pastor crypto fraud: A Colorado court found Eli and Kaitlyn Regalado sold INDXcoin to their church community while misrepresenting its value and using investor funds for personal expenses. The court ordered $3.39 million in restitution and imposed a 20-year securities ban; criminal charges are pending.
Court found the Regalados violated state securities laws and defrauded church investors.
The couple raised funds from at least 596 investors across INDXcoin and Sumcoin offerings and deposited proceeds into personal accounts.
Judgment demands $3.39M repayment, shows $1.3M spent on luxury items, and includes a 20-year securities ban.
Denver pastor crypto fraud: Colorado court orders Eli and Kaitlyn Regalado to repay $3.39M after selling INDXcoin to church investors. Read the full ruling summary.
What is the Denver pastor crypto fraud ruling?
Denver pastor crypto fraud refers to a Colorado District Court finding that Eli and Kaitlyn Regalado sold a token called INDXcoin to their church community while misrepresenting its value and safety. The court ordered $3.39 million in restitution and imposed a 20-year securities ban after concluding the token qualified as a security under state law.
How did the Regalados raise funds and use investor money?
State testimony shows the Regalados promoted INDXcoin with religious framing, saying divine guidance directed the token’s creation. They formed a “Prophetic Team” and made decisions influenced by prayer, which they used to market the token to church members and other investors.
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Records presented in court indicate they collected funds from at least 509 INDXcoin investors and 87 Sumcoin investors, deposited proceeds into bank accounts they controlled, and used at least $1.3 million on personal expenses including luxury goods, vacations, cars, and home renovations.
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Frequently Asked Questions
What did the court say about INDXcoin’s value?
The judgment stated that “INDXcoin was worthless because no one wanted to buy it,” finding the Regalados misrepresented the token’s liquidity and safety to purchasers.
How much investor money was spent on personal items?
Court records show at least $1.3 million of investor funds were used for personal expenses, including luxury handbags, jewelry, vacations, cars, and home renovations.
Who provided the enforcement action?
The enforcement action and statement of judgment were issued by the Colorado Division of Securities and entered by the Denver District Court (Judge Kutcher).
Colorado’s decision in the Denver pastor crypto fraud case underscores regulatory scrutiny when religious narratives are used to market investments. The ruling combines civil restitution and long-term securities restrictions while criminal charges proceed. Investors should verify regulatory status and liquidity claims before buying tokens promoted by faith leaders or private groups.
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