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.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
How to Avoid Crypto Taxes? (Legal Ways Explained)
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
$4.68B
, Phantom, and BscScan list a token by that name, the court noted that no contract address was included in the filings.
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
