Judge Rules Denver Pastor Defrauded Investors in $3M Crypto Scheme
The post Judge Rules Denver Pastor Defrauded Investors in $3M Crypto Scheme appeared on BitcoinEthereumNews.com. In brief The couple raised funds from nearly 600 investors through INDXcoin and Sumcoin. Judge Heidi Kutcher found the tokens misrepresented as safe despite audit failures and no market value. A July grand jury indictment separately charged the Regalados with 40 felonies that could bring prison time. A Colorado court has entered judgment against a Denver pastor and his wife after finding they defrauded hundreds of investors by selling crypto tokens created for their church. The ruling, handed down last Friday in Denver District Court, found that Eli and Kaitlyn Regalado violated state securities laws and must repay $3.39 million, according to a statement from the Colorado Division of Securities posted Tuesday. It follows a May bench trial where state attorneys said they raised funds from at least 509 INDXcoin investors and 87 Sumcoin investors. Decrypt reached out to the state securities regulator’s office for comment but did not immediately receive a response. Efforts were made to contact the Regalados and their church. Per the judgment order seen by Decrypt, the Regalados’ marketing and creation story for INDXcoin claimed “that ‘God’ told them to create, sell, and sow” the token. The ruling went on to describe how the Regalados assembled a “Prophetic Team” that met by conference calls as often as five times a week to receive updates on INDXcoin and its crypto exchange, Kingdom Wealth. Prayers were made over key decisions, with the Prophetic Team advising the Regalados “based on what God was saying,” reinforcing the religious framing they used to promote the token, according to testimony cited in the case. But the promises of spiritual guidance did not shield the couple from legal scrutiny. INDXcoin qualified as a security under the Colorado Securities Act, per the court’s findings, with Judge Kutcher determining that the couple misrepresented its…
The post Judge Rules Denver Pastor Defrauded Investors in $3M Crypto Scheme appeared on BitcoinEthereumNews.com.
In brief The couple raised funds from nearly 600 investors through INDXcoin and Sumcoin. Judge Heidi Kutcher found the tokens misrepresented as safe despite audit failures and no market value. A July grand jury indictment separately charged the Regalados with 40 felonies that could bring prison time. A Colorado court has entered judgment against a Denver pastor and his wife after finding they defrauded hundreds of investors by selling crypto tokens created for their church. The ruling, handed down last Friday in Denver District Court, found that Eli and Kaitlyn Regalado violated state securities laws and must repay $3.39 million, according to a statement from the Colorado Division of Securities posted Tuesday. It follows a May bench trial where state attorneys said they raised funds from at least 509 INDXcoin investors and 87 Sumcoin investors. Decrypt reached out to the state securities regulator’s office for comment but did not immediately receive a response. Efforts were made to contact the Regalados and their church. Per the judgment order seen by Decrypt, the Regalados’ marketing and creation story for INDXcoin claimed “that ‘God’ told them to create, sell, and sow” the token. The ruling went on to describe how the Regalados assembled a “Prophetic Team” that met by conference calls as often as five times a week to receive updates on INDXcoin and its crypto exchange, Kingdom Wealth. Prayers were made over key decisions, with the Prophetic Team advising the Regalados “based on what God was saying,” reinforcing the religious framing they used to promote the token, according to testimony cited in the case. But the promises of spiritual guidance did not shield the couple from legal scrutiny. INDXcoin qualified as a security under the Colorado Securities Act, per the court’s findings, with Judge Kutcher determining that the couple misrepresented its…
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