U.S. judge rules that a pastor defrauded investors in a $3 million cryptocurrency scam

ChainCatcher news, according to Decrypt, the Colorado state securities regulator stated on Tuesday that the Denver District Court recently found pastor Eli Regalado and his wife guilty of fraud, ordering them to repay $3.39 million to investors.

The court determined that they illegally raised funds from at least 596 investors through the church-issued INDXcoin and Sumcoin tokens, violating securities laws. According to the judgment, the Regalado couple claimed that "God" instructed them to create, sell, and "sow" INDXcoin. They also formed a "prophet team," held multiple weekly conference calls to obtain the latest information about the token and exchanges, prayed during key decisions, and made suggestions based on "God's will," reinforcing a religious promotional framework. However, this did not exempt them from scrutiny. In addition, they deposited investor funds into their own accounts, with at least $1.3 million used for personal luxury spending.