Colorado judge rules Denver pastor defrauded investors in $3 million crypto scam

A Colorado court has ruled against a Denver pastor and his wife, finding that they defrauded hundreds of investors by selling crypto tokens created for the church. On Friday, the Denver District Court ruled that Eli and Kaitlyn Regalado violated state securities laws and must repay $3.39 million, according to a statement released Tuesday by the Colorado Securities Department.
Previously, during a trial in May, state prosecutors said they had raised funds from at least 509 INDXcoin investors and 87 Sumcoin investors.
According to the court verdict, the Regalados claimed in INDXcoin's marketing and creation story that "it was'God 'who told them to create, sell, and seed the token." The verdict also described how the Regalados formed a "Prophetic Team" to follow up on INDXcoin and its crypto exchange Kingdom Wealth via conference calls up to five times a week.